HK stocks end down as Shanghai edges up to a high
The Hang Seng Index closes below 24,000 on Friday. File photo: RTHK
Mainland stocks edged higher on Friday, with the benchmark Shanghai index ending at a nine-month high on fresh signs of easing Sino-US trade tensions, while Hong Kong shares slipped.
The benchmark Hang Seng Index ended the day at 23,916.06, down 153.88 points or 0.64 percent while the Hang Seng China Enterprises index fell 0.45 percent to 8,609.27.
On the mainland, the benchmark Shanghai Composite Index ended up 0.32 percent at 3,472.32, the highest closing since October 8, while the Shenzhen Component Index closed 0.25 percent lower at 10,508.76.
The combined turnover of these two indices stood at 1.43 trillion yuan, up from 1.31 trillion yuan on the previous trading day.
Shares in the gaming, banking and power sectors led the gains, while those related to solid-state battery, beauty care and non-ferrous metals suffered the most.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 0.36 percent to close at 2,156.23.
The banking sector was among the top gainers, with a sub-index tracking the industry closing 1.86 percent higher at a record high. The sub-index gained 3.81 percent for the week.
The steel sector also outperformed after China's top leaders pledged to tighten oversight of aggressive price-cutting by domestic firms, as the economy grapples with persistent deflationary pressures. The CSI steel sub-index gained 0.58 percent.
"It could be a prelude to potential supply side reform 2.0, in our view," Citi analysts said.
"We see the prolonged producer price index deflation and profitability concerns as the motives this time. Steady growth so far this year has also opened room for such an initiative."
Citi identified sectors where reform is most urgently needed: ferrous-metal processing (mostly steel), fuel processing, chemicals, non-mineral products (including cement, glass) and metal products.
The mainland gains came as the United States told GE Aerospace it can restart jet engine shipments to China's Comac, a source said.
The United States has also lifted restrictions on exports to China for chip design software developers and ethane producers.
Meanwhile, China is reviewing and approving export licences for controlled items and has been informed by the United States about cancellations of "restrictive measures" against Beijing, the Commerce Ministry in Beijing said. (Reuters/Xinhua)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
.jpg%3Fitok%3DyUalx1lH&w=3840&q=100)
South China Morning Post
7 hours ago
- South China Morning Post
‘Made in China 2025': how has the nation changed 10 years after setting its manufacturing blueprint?
Read more: In 2015, China set out on an ambitious 10-year plan – dubbed 'Made in China 2025' – to achieve self-reliance, innovation and strength in the manufacturing industry. At the time, the nation was known as the 'world's factory' and stood at the lower end of the global industrial value chain. A tech war between the US and China significantly impacted the plan. But despite geopolitical tensions, more than 86 per cent of Beijing's goals have been met, with several remaining targets likely to be completed by the end of 2025.
HKFP
a day ago
- HKFP
France says ‘major issues remain' despite brandy price accord with China
France on Friday praised China's steps to settle a trade dispute over European brandy imports but warned that 'major issues' remained unresolved. The signs of a thaw in the row over the alcohol came as China's Foreign Minister Wang Yi met French President Emmanuel Macron and Foreign Minister Jean-Noel Barrot in Paris. In recent months China and the European Union have butted heads over Beijing's generous subsidies for its domestic industries. Beijing launched an investigation last year into EU brandy, months after the bloc undertook a probe into Chinese electric vehicle (EV) subsidies. In the latest salvo, China will from Saturday require European brandy exporters to raise prices or risk anti-dumping taxes of up to 34.9 percent. Beijing said 34 European brandy makers, including several French cognac producers, had signed an accord to avoid tariffs as long as they stick to an agreed minimum price. France's cognac makers' association BNIC, which includes key producers Hennessy, Remy Cointreau and Martell, confirmed that some companies had agreed to price increases in China to avoid anti-dumping taxes. 'Positive step' Macron and Barrot praised China's steps to resolve the dispute but stressed they would discuss the outstanding differences with Wang. 'This is a positive step towards resolving this dispute, which was threatening our exports,' Macron said on X. 'I will continue to raise these issues with the Chinese authorities this afternoon.' In a statement to AFP, Barrot said: 'Several major issues remain unresolved, in particular the exclusion of certain players from the scope of the exemptions.' 'We remain fully committed to reaching a definitive solution based on the conditions that existed prior to the investigation,' he said. Wang has held fraught meetings in several European countries this week. After meeting Macron and Barrot, Wang told a press conference: 'The two sides had in-depth, active and sincere exchanges on Sino-French and European relations.' No mention was made of the brandy dispute. Almost all EU brandy is cognac produced in France, whose exports to China are worth 1.4 billion euros (US$1.6 billion) per year. French liquor giant Jas Hennessy said it would face levies of 34.9 percent if it did not stick to the deal. Remy Martin will be hit with 34.3 percent and Martell 27.7 percent. 'The decision to accept the price commitment once again demonstrates China's sincerity in resolving trade frictions through dialogue and consultation,' a Chinese commerce ministry spokesperson said in a statement. However, the European Commission kept up criticism of China's new tariffs. 'We believe that China's measures are unfair. We believe they are unjustified,' said commission trade spokesman Olof Gill. 'We believe they are inconsistent with the applicable international rules and are thus unfounded.' Upcoming summit China has sought to improve relations with the European Union as a counterweight to the United States. But frictions remain, including a yawning trade deficit of US$357.1 billion between China and the EU, as well as Beijing maintaining close ties with Moscow since Russia invaded Ukraine. The trade row blew up last year when the EU moved to impose hefty tariffs on Chinese electric vehicles, arguing that Beijing's subsidies unfairly undercut European competitors. Beijing rejected the accusation and announced what were seen as retaliatory probes into imported European pork, brandy and dairy products. The EU imposed extra import taxes of up to 35 percent on Chinese electric vehicles in October. Beijing lodged a complaint with the World Trade Organisation, which in April said it would set up an expert panel to investigate. China and the EU are to hold a summit this month to mark the 50th anniversary of their diplomatic ties. But Bloomberg News reported, citing unnamed sources, that Beijing would cancel the second day of the summit, in a sign of the tensions.
RTHK
a day ago
- RTHK
Fine tune details for southbound car scheme: lawmakers
Fine tune details for southbound car scheme: lawmakers From as early as November, motorists across the border can apply for the Southbound Travel for Guangdong Vehicles scheme. File photo: RTHK Lawmakers on Saturday urged the government to focus on the finer details of an incoming scheme that will allow cars from Guangdong to drive into Hong Kong. From as early as November, motorists across the border can apply for the Southbound Travel for Guangdong Vehicles scheme. Drivers can park their vehicles at the airport with 100 cars per day allowed access to urban areas in the initial phase. Transport sector lawmaker Frankie Yick says he believes the city can handle more vehicles heading south but that he thinks the administration still has work to do. "There are quite a number of details that need to be clarified. Let's say, how drivers are going to settle the toll fees," Yick said after a radio programme. "And also, a lot of people are concerned about the driving behaviour... The government should do something to alert or educate those potential drivers coming down to Hong Kong." Roundtable lawmaker Michael Tien also said that there might be differences in driving cultures. "There are many subtle nuances that are different. But as time progresses, the gap will narrow," Tien said. Secretary for Transport and Logistics Mable Chan has said the scheme's implementation is one of her bureau's main tasks this year. "We will closely monitor the scheme's implementation and consider further opening up more places based on the experiences and feedback from all parties," she wrote on her official blog.
