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Arab Times
4 hours ago
- Business
- Arab Times
China's booming tech sector redraws investment map
BEIJING, June 22, (Xinhua): China's surging technology innovation is rewriting the playbook for foreign investors, with the country's booming tech sector having reshaped expectations regarding its long-term growth potential. The latest example came as Goldman Sachs unveiled a list of what it has identified as China's Prominent 10, a move reminiscent of the Magnificent Seven, a group of high-performing and influential stocks in the U.S. tech sector. The top 10 Chinese stocks, most of which are affiliated with tech giants, are expected to significantly expand their share of China's equity market over the coming two years. Among these 10 are internet behemoth Tencent, e-commerce giant Alibaba, smartphone maker Xiaomi, electric car manufacturer BYD, digital shopping platform Meituan and pharmaceutical company Hengrui. They 'embody the theme of AITech development, self-sufficiency, going global, services and new forms of consumption, and China's improving shareholder returns,' according the investment bank's research findings. Behind the stock picks spreadsheets of Wall Street economists lies a deeper recalibration, with those observers who once declared 'peak China' now overhauling their models, and transitioning to a view which sees tech innovation as driving a new wave of substantial expansion in China. Last month, MSCI added five Ashare stocks, including VeriSilicon, Baili-Pharm and APT Medical, to its China Index. These new constituents are mostly in tech and biotech sectors, refl ecting global index compilers' recognition of China's economic transformation. Top global investors, including Goldman Sachs and JP Morgan, have turned bullish on China's market -- driven by global investor interest in Chinese equities due to the country's AI push, led by DeepSeek. This month, notably, major investment banks have raised their growth forecasts for the Chinese economy. As of May 29, the Hang Seng Tech Index had surged over 40 percent year on year, outperforming major global tech indices. Of the top ten most actively traded Hong Kong stocks, seven are Hang Seng Tech constituents, with the three most active being Tencent, Alibaba and Xiaomi. China's AI breakthroughs highlight its supply chain and innovation strengths, supported by a robust ecosystem of infrastructure, data, talent and energy, said Xing Ziqiang, Morgan Stanley's chief economist for China. 'China's tech innovations are shifting from isolated breakthroughs to systematic integration, with many fields experiencing their 'DeepSeek moment' and some emerging tech firms achieving a global presence from the start,' said Wu Qing, head of the China Securities Regulatory Commission, at a forum in east China's Shanghai on Wednesday. Additionally, tech stars like Deep- Seek and Huawei weren't included in Goldman Sachs' stock picks only because they're not publicly traded. Beyond these giants, many Chinese startups are rising to prominence. China now has more than 400 unicorn companies, nearly one-third of the global total. The country's recent economic data also support such an outlook. Data from the National Bureau of Statistics shows that China's hightech manufacturing added value grew by 8.6 percent in May, outpacing the overall growth of large-scale industrial added value by 2.8 percentage points. Within this sector, production of 3D printing equipment, industrial robots and new energy vehicles increased by 40.0, 35.5 and 31.7 percent, respectively. China is not only the largest market but arguably also the world's innovation hub, propelling cost efficiencies and next-gen robotics development, said a Morgan Stanley research note recently. 'It is becoming apparent that national support for 'embodied AI' may be far greater in China than in any other nation, driving continued innovation and capital formation,' said Zhong Sheng, Morgan Stanley's head of industrials research. 'The continuing AI and technology breakthroughs have rewritten the narrative and brightened the growth prospects' for China's privately-owned enterprises, who also lead the charge of 'China's 'Going Global' ambition,' according to the Goldman Sachs report. This year, overseas demand for China's AI-driven tech products has surged. Data from AliExpress reveals that during its March promotion, sales of ARVR glasses, led by brands like XREAL and Rokid, had jumped 600 percent from the previous month. 'Last year, our AR glasses' overseas business accounted for nearly 70 percent of total sales, with overseas sales growing by 30 percent year on year,' said Zhang Longjie, global sales head of consumer-grade AR glasses firm XREAL. Despite global uncertainties, China's high-tech product exports performed strongly in the first five months of 2025 -- rising 6.1 percent year on year in U.S.-dollar terms, according to the General Administration of Customs data.
Business Recorder
5 days ago
- Business
- Business Recorder
China, HK stocks down as annual financial forum offers few surprises
SHANGHAI: China stocks dipped slightly on Wednesday as speeches by top financial regulators at the opening of the annual Lujiazui Forum delivered few fresh policy signals. Hong Kong shares also fell. China, HK stocks close up as investors digest mixed macro data China's blue-chip CSI300 Index edged down 0.1% by the lunch break, while the Shanghai Composite Index lost 0.2%. Hong Kong's benchmark index Hang Seng was down 1.2%. China will advance the development of science and technology bonds to support innovation, Wu Qing, chairman of China's Securities Regulatory Commission, told the Lujiazui Forum in Shanghai on Wednesday. Meanwhile, the country's foreign exchange regulator vowed to keep the yuan exchange rate basically stable and fend off external shocks and risks. With few policy surprises from the forum, investors turned their focus to the upcoming July Politburo meeting for clearer signals on economic support. One of the few bright spots onshore were liquor shares , which rebounded for the third straight session, after tumbling to their lowest level since September 2024 after some of China's civil servants were banned from dining out in groups of more than three. Risk sentiment remained fragile on Wednesday as Iran and Israel launched fresh missile strikes at each other, extending their air war into a sixth day. Hong Kong shares of Chinese electric vehicle (EV) maker Li Auto fell nearly 4% to their lowest since May 9.
South China Morning Post
5 days ago
- Business
- South China Morning Post
China to loosen IPO restrictions by reinstating listings of unprofitable start-ups: CSRC
China plans to resume listings of unprofitable start-ups on its technology boards in an effort to support the nation's drive toward technological self-sufficiency and roll back curbs on the initial public offering (IPO) market , according to the head of the stock market regulator. At the Lujiazui Forum in Shanghai on Wednesday, Wu Qing, chairman of the China Securities Regulatory Commission (CSRC), said listings would be restarted for pre-profit firms seeking to trade on the Shanghai exchange's Technology and Innovation Board, also known as the Star Market . The watchdog would also apply the rule to Shenzhen's ChiNext board, which hosts smaller companies. The relaxation came as a surprise to investors after two years of strict IPO approvals by the CSRC, which sought to arrest a decline in China's US$10.5 trillion stock market by reducing equity supplies. The move is seen as a supportive measure for China's start-ups at a time when Beijing is seeking to reduce its tech reliance on the US amid simmering trade tensions. 'Innovation requires alliance among scientists, entrepreneurs and investors,' Wu said. The Star Market 50 Index, which tracks the 50 biggest stocks on the board, including Semiconductor Manufacturing International and artificial intelligence (AI) chipmaker Cambricon Technologies, reversed a loss of as much as 0.4 per cent before trading little changed. A gauge of the ChiNext board dropped 0.4 per cent. The relaxation was meant to 'better and more precisely' serve high-quality tech companies that have breakthroughs, big spending on research and development, and promising business outlooks, Wu said. A wider array of unprofitable companies – including firms engaged in AI, commercial aviation and the low-altitude sector – could apply for listings on the Star Market before they became profitable, he said. The CSRC would also kick off a trial programme introducing 'seasoned' professional investors to trade the stocks after listings, Wu said.
Yahoo
28-05-2025
- Business
- Yahoo
Here's what's behind China's IPO crackdown
Shein appears to be abandoning its hopes for a flotation in London. The fast-fashion retailer is reportedly preparing to list on the Hong Kong stock exchange as its application to launch an initial public offering on the London Stock Exchange stalls with Chinese regulators, Reuters reported Wednesday. While Shein is headquartered in Singapore, it was founded in China, where the majority of its suppliers remain. Sources told Reuters that the company aims to file a draft prospectus with Hong Kong's stock exchange in the coming weeks. The delay reflects a broader shift in how Chinese regulators are vetting listings. A total of 428 IPO applications were withdrawn in China in 2024, according to Yicai Global, marking a 75% increase compared to the previous year. Chinese companies raised approximately $25.2 billion through IPOs last year, according to data across various markets. That marks a 43% decline from the year before. Notable Rejections included bubble tea companies Mixue Bingcheng, Guming Holdings and Auntea Jenny, all of which had hoped to list in Hong Kong. The trend began when Wu Qing was appointed chief of the China Securities Regulatory Commission (CSRC) in February of last year. In his previous regulatory roles, Qing was dubbed the 'broker butcher,' for leading a crackdown on securities firms. He kicked off his tenure by launching a campaign to boost the quality of listed companies and revive China's struggling stock market. 'Every step of the IPO vetting and registration process should be put under the microscope,' he said, and vowed to 'keep fraudsters away from capital markets.' A series of high-profile scandals and underperforming IPOs over the past decade have knocked investor confidence and highlighted regulatory oversight. In 2021, China had a record-breaking number of IPOs. However, of the 39 that launched in the U.S., just 32 are still trading, according to data from the U.S.-China Economic and Security Review Commission. Today, shares in each of those companies trade for less than their launch value, with most down at least 90%, according to Quartz's analysis. Perhaps the most notable: Didi. The ride-hailing app listed in the U.S. despite concerns among China's regulators. Shortly after the launch, an investigation found the company broke cybersecurity and data privacy laws. Chinese authorities fined the firm $1.2 billion, and it was delisted from the New York Stock Exchange (ICE). New measures under Qing include higher profitability thresholds for listing on main boards and the Growth Enterprise Market. Quotas for onsite inspections have risen from 5% to 20% of applicants. Plus, there's been a tightening of rules relating to revenue sources and business sustainability. As part of the enhanced scrutiny, officials have reportedly shown up at an IPO applicant's office, sources told Asia Financial. Personal bank data was scanned and business transactions probed, sources said. For the latest news, Facebook, Twitter and Instagram. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
South China Morning Post
16-05-2025
- Business
- South China Morning Post
CATL's dilemma: top-of-the-range Hong Kong IPO price may take fizz out of trading debut
The pricing of Contemporary Amperex Technology's (CATL) Hong Kong shares at the top end of the range bodes well for China's leading companies eyeing a listing in the city, but the richly valued offer price may hurt the new stock's first-day performance due to its smaller-than-average discount to the company's mainland-traded shares. The Ningde, Fujian province-based maker of lithium-ion batteries that power electric vehicles (EV) is expected to raise HK$35.66 billion (US$4.6 billion) from the sale of 135.6 million shares at HK$263 apiece, the Post reported on Wednesday, making it the world's largest listing this year. CATL will reveal the final offer price on Monday night and start trading the following day. Shenzhen-listed CATL , which is capitalised at 1.2 trillion yuan (US$166.4 billion), is the ninth-biggest company trading on the mainland and one of the few big names that have yet to go public in Hong Kong. Wu Qing, chairman of the China Securities Regulatory Commission, reaffirmed the support for high-quality Chinese companies to list in the city last week, showcasing Beijing's resolve to solidify Hong Kong's position as a top global financial centre amid an all-out confrontation with the US. The Hong Kong stock exchange also said that it would fast-track approvals for dual listings. Mixue Group's mascot Snow King strikes a gong during the company's listing ceremony at the Hong Kong stock exchange on March 3. Photo: Reuters CATL's listing 'is actually one of the major measures to support Hong Kong's equity market, and one of the ways to help Chinese leading companies to capture more international funds', said Jason Chan, an equity strategist at Bank of East Asia in Hong Kong. CATL's offer price is 6.7 per cent below the close of 260.18 yuan for its Shenzhen-listed shares on Thursday. That compares with the average 25 per cent discount for the Hong Kong-traded shares of the 158 dual-listed Chinese companies, such as ICBC and Ping An Insurance Group.
