Latest news with #AsianEquities
Forbes
6 hours ago
- Business
- Forbes
China Market Update: Middle East Cool Off Heats Up Hong Kong, Week In Review
CLN Asian equities were mixed overnight following yesterday's Trump's Middle East escalation language, which sent risk assets down the elevator. President Trump appears to be giving the Iranian government time to negotiate. The US dollar was mixed versus Asian currencies, though the renminbi/CNY closed below at 7.17 as the PBOC kept the 1 and 5 Year Loan Prime Rate at 3% and 3.5% as expected. Summer is officially here for traders as S&P and FTSE indices rebalance today, with the latter experiencing elevated volumes across the region as Hong Kong, South Korea, and India outperformed. FTSE's decision to upgrade South Korea to developed markets creates a significant performance disparity from MSCI's emerging markets index. Long MSCI EM and short FTSE EM would be a fun trade to play South Korea's massive rebound. Alibaba +1.55% was Hong Kong's most heavily traded stock as the company saw its FTSE weight increase, as volumes doubled from yesterday. Alibaba announced 453 brands sold more than RMB 100mm worth of goods during the 618 (June 18th) E-Commerce event. There was a lot of chatter about the government replenishing local government consumer subsidy funds after strong demand, which led to depletion in several cities. Horizon Robotics (9960 HK) fell by 1.86% despite being added to the FTSE indices, though the intraday chart shows the power of passive as massive block trades occurred at the close. Competitor Unitree appears closer to an Hong Kong IPO after another funding round. Mainland-listed soy sauce maker Foshan Haitian Flavouring & Food Co. relisted on the Hong Kong Exchanges today after raising HK $10.1B ($1.3B). High flyer Pop Mart -3.62% was clipped. While Hong Kong had a strong day following yesterday's debacle, Mainland China was off with index heavyweights such as banks, insurance, liquor, and telecom outperforming, which kept indices from falling further. Shipping and port stocks rebounded in hopes that Middle Eastern tensions would cool off. Otherwise, relatively quiet! New Content Read our latest article: Navigating Global Crosswinds: Carbon Markets Respond to Tariff Tactics and Executive Orders Please click here to read Chart1 Chart2 Chart3 Chart4 Chart5 Chart6
Bloomberg
2 days ago
- Business
- Bloomberg
Asian Stocks to Fall After Fed's Inflation Warning: Markets Wrap
Asian equities were primed to open lower Thursday after Federal Reserve Chair Jerome Powell said he expects inflation to pickup meaningfully in the coming months. The Fed left rates unchanged in its Wednesday meeting and indicated it still sees two further cuts this year. Yet Powell said tariff-driven economic uncertainty and inflation risk continued to complicate the central bank's bid to ease policy. The dollar strengthened while Treasuries and US stocks were little changed Wednesday. US markets are closed Thursday for a holiday.
Forbes
2 days ago
- Business
- Forbes
China Market Update: Middle East Weighs On The Middle Kingdom
CLN KraneShares Asian equities, despite US involvement/escalation concerns in the Middle East, were mixed, led higher by Japan, Taiwan, and surging South Korea, while Hong Kong, Thailand, and Pakistan underperformed. The US dollar finally showed its reserve currency status outperforming most Asian currencies except for the Yen and Singapore dollar. It was an interesting divergence in the region as Hong Kong growth stocks underperformed for the second day in a row on light volumes, indicating investors' limited risk appetite against the geopolitical backdrop. Fairly uneventful risk off night with little news, except for Mainland investors buying the Hong Kong dip with $158 million of net buying as Southbound Stock Connect trading accounted for 53% of Hong Kong turnover. Following a morning selloff, the Mainland market managed to grind higher, led by growth stocks, with electronic equipment and communication equipment providers outperforming. Mainland media noted that several consumption policies had been suspended. The issue is that demand has exceeded the government's release of RMB 162 billion of the RMB 300 billion raised through the sale of long-term Treasury bonds. Further funds will flow over the course of the year, indicating strong demand, i.e., a good thing! The Lujiazui Forum kicked off today in Shanghai, with announcements from the heads of the People's Bank of China (PBOC), State Administration of Foreign Exchange, China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission (CSRC). The CSRC's speech on reforming and enhancing the STAR Board included allowing 'innovative unprofitable companies' to go public in order to raise funds to spur their R&D. Today's Forum focus was on the renminbi as currency trading, digital currency, and promotion were a priority. Hopefully, we see a reemphasis on shareholder-friendly policies promoted, including buybacks, corporate governance, and M&A in tomorrow's session. The emphasis on the STAR Board explains its outperformance today. New Content Read our latest article: Navigating Global Crosswinds: Carbon Markets Respond to Tariff Tactics and Executive Orders Please click here to read Chart1 KraneShares Chart2 KraneShares Chart3 KraneShares Chart4 KraneShares Chart5 KraneShares Chart6 KraneShares
Forbes
3 days ago
- Business
- Forbes
China Market Update: Alibaba's AI Closer To Apple IPhone Inclusion
CLN Asian equities traded quietly overnight as investors remained cautious amid ongoing developments in the Middle East, with the US dollar strengthening against local currencies. Both Hong Kong and Mainland China opened higher but quickly faded on light volume, as value, dividend, and low-volatility factors outperformed growth stocks. Hong Kong internet stocks held up better than most, even as several growth subsectors, including biotech and EV/hybrid, saw profit-taking, with notable declines in highflyers like Pop Mart (-6.04%), Laopu Gold (-6.67%), and Mixue Group (-5.85%). Biotech stocks fell despite the National Medical Products Association's proposal to fast-track drug clinical trial approvals to 30 days. Alibaba rose 1.68% following the release of its updated Qwen3 AI model, which is believed to power Apple AI on iPhones sold in China. This development lifted Apple's ecosystem in anticipation of Apple enhancing its offerings in a key market where it has recently lost share to Huawei. Other internet stocks bucking the trend included Tencent (+0.79%), Bilibili (+0.18%), (+1.31%), and (+0.46%), while Meituan (-0.5%), KE Holding (-0.79%), Baidu (-0.18%), and NetEase (-0.58%) lagged. A potentially positive sign for internet stocks emerged as the State Post Bureau reported that express delivery revenues increased in May by 8.2% year-over-year to CNY 125.5 billion, with volume up 17.2% year-over-year to 17.32 billion packages. Yesterday's Goldman Sachs report on China's 'Prominent 10' growth stocks was widely publicized, highlighting leading names expected to benefit from a more favorable regulatory environment and AI investments. The Beijing municipal government announced an expansion of its consumer subsidy program, adding an extra 5% to the existing 15% subsidy on smart toilets, smart door locks, floor sweepers (including robotics), and garbage disposals. The program also maintains a 15% subsidy for digital products such as mobile phones, tablets, smart watches, and home appliances including refrigerators, washing machines, TVs, air conditioners, computers, water heaters, stoves, and range hoods. The rebound in Hong Kong's stock market has led to an uptick in IPOs and secondary placements, increasing overall supply. Demand for Chinese equities is growing among non-US investors, though it remains moderate, as Southbound Stock Connect volume accounted for 56% of Hong Kong volume today, the fourth consecutive day above 50%. Today's examples of increased supply include Chow Tai Fook Jewellery Group (-7.29%) after raising $1.1 billion in a convertible bond, chatter about Unitree Robotics going public, Horizon Robotics announcing a HK$4.7 billion private placement, and ride-hailing company Caocao filing for a $233 million Hong Kong IPO. Mainland-listed Lakala Payment surged 16.16% after revealing plans to relist in Hong Kong. Mainland stocks slipped slightly more than Hong Kong as the market continues its slow upward grind. A mainland media article noted the rise in consumption stocks, excluding Moutai stocks like Kweichow Moutai (+0.33%) and Wuliangye Yibin (-0.47%). It is evident that the widely held leaders from a few years ago have been replaced by tech and growth names. The Lujiazui Forum begins tomorrow, with a Shanghai-Hong Kong financial cooperation agreement widely anticipated. The Guangzhou Municipal Bureau of Commerce announced plans to 'Boost Consumption in Guangzhou,' including the complete removal of purchase, sale, and price limits for real estate, as well as reductions in down payment ratios and loan interest rates. Meanwhile, EU leaders took a tough stance on China at the G7, though it remains unclear whether this is rhetoric or reality. A recent Financial Times article titled 'China's $1.1tn asset manager becomes star player on 'national team'' discussed the $140 billion invested in Mainland-listed China ETFs by Central Huijin, the financial services arm of China's sovereign wealth fund. Some cited this as evidence of government intervention in free markets, while the article suggested the goal is to prop up the stock market. However, the intervention has not yielded the desired results: in local currency terms, the Shanghai and Shenzhen Composites remained down until the September 2024 stimulus announcement. Despite significant government efforts, the market did not respond until meaningful stimulus was introduced. One reason the 'National Team' cannot move the dial is that the market cap of mainland-listed Chinese stocks is close to $12 trillion, with a free float just over $10 trillion, making $149 billion insufficient to significantly impact the market. Alternatively, Central Huijin may simply view the mainland market as undervalued and is buying accordingly. Today is June 17th, or 6/17. As a lighthearted aside, perhaps today should be called 'Boston Day' in honor of Boston's area code, 617. Live Webinar Join us Tuesday, June 17, at 10 am EDT for: Carbon Update: EU Market Momentum & California's Legal Landscape for Investors Please click here to register New Content Read our latest article: Navigating Global Crosswinds: Carbon Markets Respond to Tariff Tactics and Executive Orders Please click here to read Chart1 Chart2 Chart3 Chart4 Chart5 Chart6
Forbes
4 days ago
- Business
- Forbes
China Market Update: Growth Stocks Rebound On Strong Retail Sales
CLN Asian equities exhibited resiliency overnight despite escalating tensions in the Middle East. Both Hong Kong and Mainland China opened lower but finished higher, led by growth stocks. There was another factor rotation, as growth and momentum factors outperformed value, dividend, and low-volatility strategies. Several catalysts drove markets, with the most important being the release of economic data and the National Bureau of Statistics (NBS) press conference. Retail sales were a strong beat, while industrial production missed expectations. Real estate was a top performer in both markets after the NBS press conference concluded with a discussion on further measures needed for the sector. I remain a believer in real estate bonds over real estate stocks, given their attractive yields—currently double those of U.S. high-yield bonds—but the market remains indifferent. This week's Lujiazui Forum is focused on financial markets, and we may receive some policy guidance. Goldman Sachs released three reports on China's 'Prominent 10'—internet and growth stocks with strong revenue growth and inexpensive valuations compared to the U.S. 'Magnificent 7'—which garnered significant attention locally. The NBS press conference also highlighted the upcoming 618 (June 18) e-commerce event, underscoring the government's emphasis on online consumption. There is increased chatter about Hong Kong-listed stocks relisting in Mainland China, though it remains unclear whether internet companies can do so due to their variable interest entity (VIE) structures. I will continue to monitor this and report back tomorrow. These companies would likely be highly sought after by local investors, as brokers had a strong day. Xiaomi rose 4.23% after founder Lei Jun announced that the YU7 SUV price will be released at the end of the month. Kuaishou gained 3.45% following an analyst upgrade on Kling AI revenue. Mainland investors bought $731 million worth of Hong Kong-listed stocks via Southbound Stock Connect. Household appliances lagged despite confirmation that subsidies will continue through year-end. Trading volumes were lower compared to Friday's index rebalance. May Economic Data Highlights: Key Takeaways from the NBS Press Conference: I will continue to monitor developments, especially around the potential relisting of Hong Kong-listed stocks in Mainland China and further policy signals from the Lujiazui Forum. Live Webinar Join us Tuesday, June 17, at 10 am EDT for: Carbon Update: EU Market Momentum & California's Legal Landscape for Investors Please click here to register New Content Read our latest article: Navigating Global Crosswinds: Carbon Markets Respond to Tariff Tactics and Executive Orders Please click here to read Chart1 Chart2 Chart3 Chart4 Chart5 Chart6
