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☆ A Fed rate cut may lend a helping hand to Chinese stocks. Or not.
▼ + stars: | 2024-09-15 | by ( Evelyn Cheng | ) www.cnbc.com time to read: +5 min

By extension, the move in Washington, D.C. could also spell good news for Chinese stocks. High U.S. interest rates relative to China have made it fairly straightforward for global institutions to pick U.S. Treasurys over Chinese stocks. More than lower rates needed Other global investors say Chinese stocks need more than easier monetary policy to become truly attractive. The "government can push interest rates down, but if households don't want to spend the extra income, it won't go into the economy," he said. Earlier this year, People's Bank of China Governor Pan Gongsheng acknowledged U.S. Fed easing would create room for China to further cut interest rates.

Persons: Steven Sun, Laura Wang, Morgan Stanley, Aaron Costello, Yi Gang, Costello, James Wang, Wang, Pan Gongsheng Organizations: U.S . Federal Reserve, HSBC, HSBC Qianhai Securities, Nasdaq, U.S, Treasury, Cambridge Associates, CNBC, People's Bank of China, UBS Investment Bank Research, UBS, Hang Seng China Enterprises, China Southern Airlines, Hengli Petrochemical, Saudi, Aramco Locations: China's, Washington ,, China, 1H24, Asia, U.S, Beijing, Hang, Shenzhen, Shanghai

☆ China is laying out ambitious growth goals for 2024, and even Beijing knows they'll be hard to hit
▼ + stars: | 2024-03-05 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read previewChina is laying out ambitious growth goals for 2024, and Beijing knows they'll be hard to hit. China — the world's second-largest economy — is targeting economic growth of around 5% this year, Li Qiang, the country's premier, announced on Tuesday. "Achieving the 'around 5%' growth target will be very challenging," Nomura economists wrote in a note on Tuesday. Economists are watching to see whether Beijing will inject more stimulus into its economy to help it hit its 5% growth target.

Persons: —, they'll, Li Qiang, Li, Nomura, Lynn Song Organizations: Service, Business, National People's, ING, Nomura, Deutsche, Seng China Enterprises Locations: China, Beijing, Greater China, Hong Kong

☆ Chinese consumers are about to return from the holidays. That doesn't mean the economy will pick up.
▼ + stars: | 2024-02-14 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

AdvertisementChina's economy and markets were weak coming into 2024, but investor sentiment could worsen after the ongoing Chinese New Year break. "Service consumption growth will likely slow sharply after the Chinese New Year holiday on fading pent-up demand and weakening consumer confidence," the economists wrote. Authorities have pulled more than a dozen moves since January to try to stabilize the stock market rout and support downbeat property market demand amid its real-estate crisis. After all, there were suggestions earlier that authorities are considering a stabilization fund to rescue the flailing stock market. AdvertisementMainland stock markets are closed this week for public holidays.

Persons: —, Rich Lesser, Lesser, Hang, Xi Jinping Organizations: Beijing, Service, Chinese Ministry of Commerce, Nomura, Boston Consulting, Hang Seng China Enterprises, Authorities Locations: China, Beijing, Hong Kong

☆ China's chances of staging an economic rebound this year look slim
▼ + stars: | 2024-02-02 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

China faces severe real estate woes, deflation, and an exodus of global investors. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. AdvertisementThe world has yet to witness any post-pandemic rebound in China, and Wall Street expects little to change in 2024. The ongoing exodus of global investors is evidence the bear case is intact, and the country's real estate sector continues to look more and more precarious. AdvertisementThat in turn has cratered sentiment, as Chinese households have the majority of their wealth tied to real estate.

Persons: —, DataTrek, Nicholas Colas, Jessica Rabe, Mike Edwards, Weiss, haven't, Edwards, Tracy Chen, Chen, Caesar Maasry, Goldman Sachs, Maasry Organizations: Service, Wall, Tech, Baidu, US, Business, Brandywine, Supply, Seng China Enterprises, Bloomberg Locations: China, Beijing

HONG KONG, Oct 25 (Reuters) - Hong Kong's efforts to revive its shrinking stock market are mere stopgap solutions, as analysts say a reversal in fortunes for Asia's premier financial hub would not be possible without a major improvement in China's economic prospects. With a market value of around $4.3 trillion, Hong Kong is home to one of the top-ranked stock markets globally just behind those in the United States, Japan, China and Europe. New share offerings in Hong Kong have fizzled. Local media reported that a record 47 of the 638 trading participants on the Hong Kong exchange shut shop last year. Chinese firms listed in Hong Kong, such as tech giants Tencent (0700.HK) and Alibaba (9988.HK), comprise the bulk of the turnover on the Hong Kong exchange, leaving Hong Kong hostage to China's fortunes.

Persons: Hong, John Lee, Dickie Wong, Rob Brewis, Aubrey, Eddie Tam, Alvin Cheung, Cheung, ”, Alex Wong, Alex KY, Wong, who'd, Summer Zhen, Xie Yu, Vidya Ranganathan Organizations: Nasdaq, Kingston Securities, Seng China Enterprises, HK, Aubrey Capital Management, Hong, Asset Investments, Prudential, Asset Management Company, Global, Thomson Locations: HONG KONG, China, Hong Kong, United States, Japan, Europe, Shenzhen

☆ China's central bank trims 1-year rate, but unexpectedly leaves 5-year rate unchanged
▼ + stars: | 2023-08-21 | by ( Clement Tan | ) www.cnbc.com time to read: +1 min

China's central bank cut its one-year loan prime rate Monday, while leaving its five-year rate unchanged. This was the second time China has cut this rate in three months. The PBOC left its five-year loan prime rate — the peg for most mortgages — unchanged at 4.2%, while economists expected a 15 basis point cut due to default risks from festering liquidity woes in the country's property sector. Country Garden is on the verge of default, while Evergrande filed last week for bankruptcy protection in a Manhattan court. "Hopes for a stimulus-led turnaround in economic activity largely depend on the prospect of greater fiscal support," he added.

Persons: Evergrande, China Julian Evans, Pritchard Organizations: People's Bank of China, Index, China Enterprises, CSI Locations: China, Manhattan, Hong Kong

☆ Chinese property developer Country Garden to be removed from Hang Seng Index on Sept. 4
▼ + stars: | 2023-08-21 | by ( Lim Hui Jie | ) www.cnbc.com time to read: 1 min

The headquarters of China's developer Country Garden Holdings in Foshan, in China's southern Guangdong province. Chinese real estate company Country Garden Holdings is set to be removed from Hong Kong's Hang Seng Index on Sept. 4. The index's operator said Country Garden will be replaced by pharmaceutical firm Sinopharm. Property management firm and affiliate Country Garden Services Holdings will also be removed from the Hang Seng China Enterprises Index. The Hang Seng China Enterprises Index serves as a benchmark that reflects the overall performance of mainland securities listed in Hong Kong.

Organizations: Garden Holdings, Garden Services Holdings, Hang Seng China Enterprises, Seng China Enterprises Locations: Foshan, China's, Guangdong, Hong Kong

☆ China just unleashed broad stimulus measures to fire up the economy — but analysts think these have failed to live up to expectations
▼ + stars: | 2023-07-31 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

On Monday, China released a series of plans to boost household consumption. However, the stimulus measures have failed to live up to expectations, said Citi analyst Wenyu Yao, Australian Financial Review reported Monday. The state planner's strategy followed a meeting of the country's top leaders last week during which they pledged to boost stimulus measures as the economy faces a "tortuous" recovery, according to Insider's translation of the official readout. The Shanghai Composite closed 0.5% higher at 3,291.04 while Hong Kong's Hang Seng Index closed 0.7% higher at 20,045.15. The Hang Seng China Enterprises Index, which tracks tech stocks listed in Hong Kong, closed 1.1% higher at 6,886.09.

Persons: Wenyu Yao, Bruce Pang, Jones Lang LaSalle, Xi Jinping, Shenzhen —, Nomura, hasn't, Hong Organizations: Service, Citi, Australian Financial, Jones, Bloomberg, Analysts, Shanghai, PMI, Seng China Enterprises Index Locations: China, Wall, Silicon, Greater China, Beijing, Shenzhen, Shanghai, Hong Kong

☆ Hong Kong stocks enter bear market territory as China reopening optimism continues to fade
▼ + stars: | 2023-05-31 | by ( Jihye Lee | ) www.cnbc.com time to read: +1 min

Zhang Wei | China News Service | Getty ImagesStock Chart Icon Stock chart iconThe Hang Seng Tech index has already fallen by more than 25% from its January peak. That's a stark contrast to the reopening optimism that had once driven Asia-Pacific's benchmark MSCI Asia Pacific index to a bull market. watch nowMorgan Stanley analysts said in a May 17 report that a weak reading in that manufacturing measure "has been a solid precursor to policy easing." "If growth does not accelerate sufficiently to narrow the output gap, social stability risk may rise and eventually trigger more meaningful stimulus," Morgan Stanley analysts wrote in the note. The index for services activity remained in expansionary territory at 54.5, but marked a second-straight month of decline.

Persons: Zhang Wei, Morgan Stanley Organizations: China News Service, Getty, Hang, Seng China Enterprises, Analysts, China, CNBC, National Bureau, Statistics Locations: Hong, Wan Chai district, Asia, Hong Kong

☆ China thesis lurches from one lazy extreme to next
▼ + stars: | 2023-05-25 | by ( Pete Sweeney | Thomson Reuters | Asia Economics Editor Pete Sweeney Joined Reuters Breakingviews In Hong Kong In September Previously He Served As Reuters' Chief Correspondent For China Economy | ) www.reuters.com time to read: +4 min

HONG KONG, May 25 (Reuters Breakingviews) - Foreigners that once piled into offshore Chinese equities are evacuating as confidence in the country’s economic recovery sags. The China trade has always been unbalanced towards overseas-listed Chinese consumer and internet firms, and foreigners preferred building factories, acquiring large stakes in companies and the like over portfolio trading. Even at a peak in 2021, they held barely over 8 trillion yuan ($1.1 trillion) of yuan-denominated Chinese stocks and bonds, per official data, compared to $27 trillion of American equivalents. Now the former figure has fallen below 7 trillion yuan. Major Chinese indexes in Hong Kong and New York have also slid, with the Nasdaq Golden Dragon China Index having lost around 15% in the last three months.

HONG KONG, May 2 (Reuters Breakingviews) - Money flowing into the People's Republic is getting uncomfortably hot. Yet recent reversals in New York, Hong Kong and Shanghai suggest that is driven by fickle short-term funds – exactly what Beijing doesn’t want. Reuters Graphics Reuters GraphicsFollow @mak_robyn on TwitterCONTEXT NEWSChinese spirit maker ZJLD shares closed down 18% lower than their initial public offering price on their trading debut April 27. The KKR-backed company raised $676 million in what was the biggest offering in Hong Kong since October 2022. Separately, the Ontario Teachers' Pension Plan, Canada's third largest pension fund, closed down its China equity investment team based in Hong Kong, Reuters reported on April 25, citing sources.

☆ China’s State-Owned Firms, Long Market Laggards, Are Suddenly Stars
▼ + stars: | 2023-04-26 | by ( Jacky Wong | ) www.wsj.com time to read: 1 min

China Mobile and other Chinese telecom stocks are benefiting from plans to boost the country’s digital economy. Photo: Cfoto/DDP/Zuma PressBetting on the government has been a winning trade in Chinese markets this year. State-owned enterprises, or SOEs, have been the standout performers among Chinese stocks in 2023. The Hang Seng China State-Holding Enterprises Index rose 8.3% this year, compared with a 1.5% decline for the broader Hang Seng China Enterprises Index.

But retail investors are haunted by the regulatory purges, volatility and losses since 2021. With 212 million retail investors, equal to Brazil's population, the conservatism of China's retail army has implications for the viability of the rally. Individual retail investor transactions accounted for about 60% of the total A-shares turnover in late 2022, China Securities Regulatory Commission Chairman Yi Huiman said in November. But data shows barely any investor accounts being opened and the margin financing that retail investors typically use has plateaued. Retail investors are waiting for clearer policy signals, said Lei Meng, China equities strategist at UBS Securities.

☆ Chinese stocks rally after the country's top pandemic official signals a softening of the country's draconian Covid-zero stance
▼ + stars: | 2022-12-01 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Vice Premier Sun Chunlan said China's pandemic is at a "new stage" that comes with new tasks. Sun's words carry weight as she's the face of China's hardline Covid-zero approach. Hong Kong and Chinese stocks are higher on optimism China is eyeing an exit from a Covid-zero policy. Sun's softening on China's draconian Covid-zero stance carries weight because she's seen as the face of the hardline approach. As the world's second-largest economy after the US, China has been under pressure from pandemic restrictions that are into their third year.

☆ Protests leave China facing a terrible trilemma
▼ + stars: | 2022-11-28 | by ( Pete Sweeney | Thomson Reuters | Asia Economics Editor Pete Sweeney Joined Reuters Breakingviews In Hong Kong In September Previously He Served As Reuters' Chief Correspondent For China Economy | ) www.reuters.com time to read: +5 min

Such behaviour undermines arguments that abandoning Xi’s zero-Covid policy will instantly stimulate economic activity. Even before factoring in Beijing’s response to the unrest, the International Monetary Fund expects a measly 3.2% GDP growth for China this year. Covid-19 cases began spiking in China in early November following a week-long public holiday. The government reported 40,347 new infections for Nov. 27 in an update issued Nov. 28. Beijing announced 20 relaxations of the country’s pandemic policy on Nov. 11, including shorter quarantine periods and more narrowly targeted lockdowns.

☆ Breakingviews: Protests leave China facing a terrible trilemma
▼ + stars: | 2022-11-28 | by ( Pete Sweeney | Thomson Reuters | Asia Economics Editor Pete Sweeney Joined Reuters Breakingviews In Hong Kong In September Previously He Served As Reuters' Chief Correspondent For China Economy | ) www.reuters.com time to read: +5 min

HONG KONG, Nov 28 (Reuters Breakingviews) - Officials’ muddled response to spiking Covid cases has set off three consecutive days of demonstrations spanning cities and social classes. Such behaviour undermines arguments that abandoning Xi’s zero-Covid policy will instantly stimulate economic activity. Covid-19 cases began spiking in China in early November following a week-long public holiday. The government reported 40,347 new infections for Nov. 27 in an update issued Nov. 28. Beijing announced 20 relaxations of the country’s pandemic policy on Nov. 11, including shorter quarantine periods and more narrowly targeted lockdowns.

☆ Global markets fall after protests erupt in China over Covid lockdowns
▼ + stars: | 2022-11-27 | by ( Laura He | ) edition.cnn.com time to read: +5 min

Hong Kong CNN Business —Global markets fell on Monday after widespread protests in China against the country’s stringent Covid-19 restrictions roiled investor sentiment. The markets tumble comes after protests erupted across China in an unprecedented show of defiance against the country’s stringent and increasingly costly zero-Covid policy. US stock futures — an indication of how markets are likely to open — fell, with Dow futures down 0.3%, or 108 points. Oil prices dropped sharply, with investors concerned that surging Covid cases and protests in China may sap demand from one of the world’s largest oil consumers. US crude futures fell 2.7% to trade at $74.22 a barrel.

☆ Investors ignore China Covid spike at their peril
▼ + stars: | 2022-11-18 | by ( Pete Sweeney | Thomson Reuters | Asia Economics Editor Pete Sweeney Joined Reuters Breakingviews In Hong Kong In September Previously He Served As Reuters' Chief Correspondent For China Economy | ) www.reuters.com time to read: +4 min

HONG KONG, Nov 18 (Reuters Breakingviews) - The blistering relief rally underway in Chinese equities is understandable. Most of China’s trading partners have moved on to living with the virus, but Xi still aspires to keep it out. New cases have officially multiplied from roughly 1,000 per day in October to 25,353 on Thursday. In the second, Covid-19 finally runs wild in China, killing the unvaccinated elderly as it did in Hong Kong earlier this year. The Hang Seng China Enterprises Index in Hong Kong has risen nearly 30% in the past 14 trading days, Refinitiv data show, while the onshore benchmark CSI300 index gained 9%.

☆ China Relief Rally Can Only Go So Far
▼ + stars: | 2022-11-11 | by ( Jacky Wong | ) www.wsj.com time to read: 1 min

Investors in the U.S. are euphoric about a possible pivot by the Federal Reserve. Across the Pacific, Chinese investors are excited about another potential pivot: Beijing’s exit of its stringent zero-Covid policy. Neither are yet reality, but hopes of both are enough to drive stocks higher. Lower-than-expected U.S. inflation had already sent Chinese stocks up Friday, but they surged further when news of China’s easing its quarantine requirements broke in the afternoon. The Hang Seng China Enterprises Index, or HSCEI, surged 8.3% while both Alibaba and Tencent gained 12%.

☆ China investors desperately seek market bottom
▼ + stars: | 2022-11-02 | by ( Pete Sweeney | Thomson Reuters | Asia Economics Editor Pete Sweeney Joined Reuters Breakingviews In Hong Kong In September Previously He Served As Reuters' Chief Correspondent For China Economy | ) www.reuters.com time to read: +3 min

HONG KONG, Nov 2 (Reuters Breakingviews) - Tuesday’s rally in China shares may have been based on rumour. But in offshore markets, the value discount on offer is so extreme it makes gambling on false hopes less risky than it might otherwise be. Buying based on online scuttlebutt might seem reckless, but less so considering how beaten up offshore shares in some Chinese companies are. The average constituent of the S&P 500 (.SP500) trades at 15 times its estimated forward earnings, while the Hang Seng China Enterprises Index (.HSCE) ratio is 5 times, Datastream shows. The question, though, is at what point investors see value in beleaguered Chinese technology companies and real estate developers.

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