Latest news with #outlook
Yahoo
an hour ago
- Business
- Yahoo
China was called 'uninvestable' not long ago. Why investors are changing their minds.
After investors fled in recent years, Wall Street is warming up to Chinese stocks again. Investors are encouraged as trade tensions ease and AI advances. Goldman Sachs identified 10 Chinese stocks it likes, including Tencent and Alibaba. Wall Street has shunned China's stock market for its volatility amid the country's economic issues. A trade war, tough regulations, and geopolitical tensions have made it difficult for investors to navigate, but as tensions ease and AI technology continues to advance, investors are starting to warm up to China again. "China has been a market that has been deemed almost uninvestable for the last year or two," Osman Ali, Goldman Sachs Asset Management's global cohead of quantitative investment strategies, said at the bank's mid-year investment outlook on Wednesday. "That's starting to change, both as a consequence of better growth, a consequence of reform, and also, hopefully some easing trade and tariff tensions." Investors' changing opinions on China come at a time when US exceptionalism is increasingly under scrutiny. Uncertain tariff policy has left businesses scrambling and cut into profit margins, and the rising US deficit has led to concerns about the status of US Treasurys as a safe-haven asset. That's not to mention the disruption that DeepSeek caused earlier this year, leaving investors wondering if US technological supremacy was as unrivaled as they once believed. A more optimistic tariff outlook is also boosting optimism. After the US and China dialed down trade tensions, Goldman Sachs raised its GDP growth estimates for China from 4% to 4.6% for 2025. The bank also raised its 12-month outlook for the Chinese equity indexes MSCI China and CSI300, pricing in an 11% and 17% implied upside, respectively. Nomura Capital also upgraded Chinese stocks to a "tactical overweight" in early May. Laura Wang, Morgan Stanley's chief China equity strategist, expects an increase in flows into Chinese equities within the next six to 12 months due to their low valuations and earnings growth outlook. She's eyeing increasing willingness among global investors to diversify into China, and Morgan Stanley has upgraded its MSCI China earnings growth outlook for this year by 2%. "There is a declining trend of US exceptionalism," Wang said on Bloomberg on June 5. "We are also seeing the technology breakthrough led by Chinese companies, which are potentially pushing up the ROE and earnings growth for MSCI China for the offshore space." While the Magnificent Seven have reigned supreme among US equities, China has its share of powerhouse companies investors might want to pay attention to. Goldman Sachs recently published a report identifying 10 of China's biggest stock market names with a buy rating, which the bank dubbed the "Chinese Prominent 10." These include Tencent, Alibaba, Xiaomi, BYD, Meituan, NetEase, Midea, Hengrui, and ANTA and span industries ranging from tech to pharmaceuticals. Some of these companies are already making waves both in and out of China. For example, the electric vehicle company BYD has generated sales comparable to Tesla and has expanded aggressively in Europe and Latin America. The bank believes these companies have the potential "improve their competitive and comparative advantages, generate positive equity returns for shareholders, and outperform vs. their industry peers in both the US and Chinese stock markets." Read the original article on Business Insider
Business Standard
11 hours ago
- Business
- Business Standard
Piyush Goyal highlights India's strategic global outlook and economic leadership at India Global Forum 2025
The Union Minister of Commerce & Industry, Piyush Goyal showcased India's strategic global outlook and economic leadership at the India Global Forum (IGF) 2025 in London yesterday. Delivering the keynote address at the IGF Mainstage Plenary Session titled "From Agreement to Action: The UK-India FTA," the Union Minister reaffirmed India's commitment to transitioning the FTA from a negotiated text into a transformative economic partnership. He was joined in conversation by the UK Secretary of State for Business and Trade, Jonathan Reynolds, with moderation by international journalist Mark Barton. Goyal described the FTA as a reflection of shared ambition between two vibrant democracies. He stated that the agreement not only enhances bilateral trade, but also demonstrates India's ability to negotiate balanced and future-oriented trade frameworks aligned with its national interests. Outlining the next phase of implementation, Goyal highlighted key priorities such as strengthening institutional mechanisms for joint governance, unlocking early benefits for SMEs and startups, and facilitating smooth mobility of skilled professionals across sectors. On June 19th, the Union Minister participated in a special session on "UK-India Science, Technology and Innovation Collaboration" at the Science Museum in London. The session explored opportunities for UK stakeholders to contribute to India's expanding investments in digital public infrastructure, sustainable manufacturing, and green technologies. Discussions also covered efforts to make India a global manufacturing hub through Make in India, PLI schemes, and enhancing collaboration in sectors such as fintech, artificial intelligence, and creative industries. The Free Trade Agreement's role in deepening cooperation in critical technologies, defence production, and advanced manufacturing was also highlighted.
RTHK
a day ago
- Business
- RTHK
HK stocks end up plunging as Mideast fuels selloff
HK stocks end up plunging as Mideast fuels selloff The Hang Seng Index ended the day sharply down by 472.95 points, or 1.99 percent, to close at 23,237.74. File photo: RTHK Stocks in mainland China and Hong Kong ended up tumbling on Thursday as mounting conflict in the Middle East rattled investor confidence, fuelling a broad selloff across sectors. In Hong Kong, the benchmark Hang Seng Index ended trading for the day sharply down 472.95 points, or 1.99 percent, to close at 23,237.74. The Hang Seng China Enterprises Index lost 2.13 percent to end at 8,410.94 while the Hang Seng Tech Index dipped 2.42 percent to close at 5,088.32. Tech and healthcare sectors were among biggest losers, down 2.4 percent and 3.2 percent respectively. Seasoning maker Foshan Haitian Flavouring surged as much as 4.7 percent in its first day of trading in Hong Kong. The market's losses came as the Hong Kong Monetary Authority said the outlook for the direction of the Hong Kong dollar and for interbank rates remains uncertain due to carry trades and other factors. The city's de-facto central bank made the comments in response to the US Federal Reserve's overnight decision to keep rates unchanged. Up north, the benchmark Shanghai Composite Index ended down 0.79 percent at 3,362.11 while the Shenzhen Component Index closed 1.21 percent lower at 10,051.97. The combined turnover of these two indices stood at over 1.25 trillion yuan, up from 1.19 trillion yuan on the previous trading day. Shares in the chemical fiber, apparel and transportation sectors suffered the most, while those related to oil, media and entertainment rallied. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 1.36 percent to close at 2,026.82. Weakness was across the board, with the CSI rare earth sector sub-index down 1.9 percent, the real estate index down 1.7 percent and the defence sub-index down 1.8 percent. Sentiment across the region remained weak as geopolitical conflicts showed no sign of easing, with Iran and Israel exchanging further air strikes on Thursday, while the United States weighed the possibility of joining the attacks on Iran. Meanwhile, this week's much-hyped Lujiazui Forum in Shanghai offered few fresh measures to bolster the market, also leaving investors in search of policy direction. The market is now "switching back to defensive mode", with indexes and volume both weak, analysts at Goldman Sachs said in a client note. Though sentiment has improved after a Sino-US trade truce last month in Geneva, China's long-term prospects remain in doubt, according to the Bank of America's latest fund manager survey. The survey noted that most fund managers in Asia still expect a structural de-rating to get underway in the world's second-largest economy. (Reuters/Xinhua)
Korea Herald
4 days ago
- Business
- Korea Herald
Korean defense stocks jump on Israel-Iran conflict
Shares of South Korean arms makers rose sharply after Israel's attack on Iran, buoyed by the outlook that their exports could increase, even propelling the benchmark stock index Kospi to reach its over three-year high. Hanwha Systems, a major defense affiliate of Hanwha Group, closed daytime trading at 64,200 won ($47), up 18 percent from the previous session. Earlier in the day, the stock surged as high as 65,000 won, hitting the highest level since its listing on the Kospi in November 2019. Other major defense stocks also showed strong performances, with LIG Nex1 rising 5.32 percent, Hyundai Rotem gaining 6.32 percent and Hanwha Aerospace climbing 2.65 percent. Shares of each of the companies posted a fresh high. Amid escalating geopolitical tensions in the Middle East, expectations are rising for increased exports by Korean defense companies, partly due to their rivalry with Israeli firms in the arms sector. Israel may impose restrictions on defense exports to maintain its military capabilities, potentially allowing Korean firms to emerge as alternative suppliers. "In the past, Israel suspended a shipment of Merkava tanks to Morocco during a conflict with Hamas militants. With Israel likely to prioritize securing its domestic stock of air defense systems and strategic assets, a similar scenario could unfold. This could present short-term export opportunities for Korean defense companies," said Jung Dong-ik, an analyst at KB Securities. The buoyant defense shares even lifted the Kospi, outweighing concerns that Middle East tensions could pressure the Korean stock market with geopolitical risks. After opening at 2,903.50, the Kospi dropped as low as 2,886.13 in the early hours, but soon turned to a gain and recovered by closing at 2,946.66, up 52.04 points, or 1.8 percent from the previous session. It was the first time the Kospi surpassed the 2,940-point threshold as of daytime closing since January 2022. Retail investors and institutions were the net buyers, scooping up shares worth 45.5 billion won and 252.4 billion won, respectively, while foreign investors dumped 322.4 billion won on the market. The government held a joint emergency meeting, agreeing to maintain a 24-hour monitoring system on the financial markets. "If market volatility becomes excessive and diverges from the fundamentals of the Korean economy, the government will take swift and bold action under its contingency plans,' a statement released by the Finance Ministry said.
Time of India
4 days ago
- Automotive
- Time of India
Ultraviolette eyes 35% revenue from exports by 2028
Premium electric motorcycle manufacturer Ultraviolette has announced its official entry into the European market , marking a major milestone in its global expansion strategy. The company is aiming for international sales to contribute up to 35 per cent of its overall revenue by 2028, PTI reports. Ultraviolette will retail its flagship high-performance electric motorcycles — the F77 MACH 2 and F77 SuperStreet — across key European markets including Germany, France, the UK, Ireland, Austria, Italy, Switzerland, Belgium, the Netherlands, and Luxembourg. The company will export completely built units (CBUs) from India, with distribution handled through local partners. Explaining the rationale behind choosing Europe as the first global destination, CEO and Co-founder Narayan Subramaniam cited the region's strong motorcycling culture and appreciation for design and performance. "The fact that certification for Europe allows us to now retail in 40 countries was a major factor. These are among the most stringent standards in the world," he told PTI. Built for Global Scale from Day One Ultraviolette's motorcycles have been developed with a global outlook from the outset. 'We were clear that we want to build a brand out of India that can scale globally. So, component selection, design, software architecture — all were designed with global markets in mind,' Subramaniam added. The company views 2025 as a 'pilot year' for the European venture, focusing on establishing brand presence, distributor networks, and understanding consumer preferences. Full-scale operations and expanded ambitions will follow over the next few years. Plans for Further Global Expansion Post-Europe Once firmly established in Europe, Ultraviolette plans to expand into Southeast Asia and Latin America. These markets are under consideration for future growth phases following success in Europe. On the possibility of setting up local manufacturing in Europe, Subramaniam said, "For now, we will be manufacturing in India and exporting to Europe, thanks to relaxed EV import duties ." However, he acknowledged that local assembly could be considered in the future as volumes increase. With its strategic European launch and ambitious export revenue targets, Ultraviolette is positioning itself as a global electric mobility innovator. By leveraging India's manufacturing strengths and targeting discerning international markets, the company aims to establish a strong global footprint in the premium electric motorcycle segment.
