China, HK stocks power ahead as eased trade tensions fuel rally
Both China's blue-chip CSI300 Index and the Shanghai Composite Index climbed as much as 0.9 per cent to eight-month highs, before paring gains to end slightly higher.
Hong Kong's benchmark Hang Seng jumped 1.6 per cent to hit its highest level since late 2021.
In a sign the rally likely has legs, daily turnover in China stocks was near five-month highs on Wednesday, while margin financing - money borrowed to buy stocks - has hit a level not seen in nearly four months.
"External and internal headwinds have subsided faster than expected," Huatai Securities said in a note to clients, adding that "in the latest round of tariff talks with the US, China has strengthened its hand."
China's economy benefits from the government's stepped-up campaign against 'involutionary competition' and positive real estate policies, Huatai added.
In a sign of reduced tensions, US Treasury Secretary Scott Bessent said on Tuesday that US and Chinese officials will meet in Stockholm next week to discuss an extension of the deadline for negotiating a trade deal. "I think trade is in a very good place with China," Bessent said.
Chinese tech stocks, which are sensitive to China-US relations, jumped on Wednesday.
China's tech-focused STAR50 Index gained 0.5 per cent, while Hong Kong's Hang Seng Tech Index jumped 2.5 per cent.
Sentiment has been buoyed by bets that steelmakers, coal miners and solar energy firms will benefit from Beijing's move to cut industrial capacity and rein in deflation, though some stocks in these sectors corrected on Wednesday following recent price surges.
Mood has also been aided by China's massive hydropower dam project that started construction this week.
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The Star
3 hours ago
- The Star
Indonesia's first high-speed railway is now transforming inbound travel and driving economic growth
JAKARTA (Xinhua): Since the launch of commercial operations in October 2023, the Jakarta-Bandung High-Speed Railway, locally known as Whoosh, has ushered in a new era of modern transportation for Indonesia. As South-East Asia's first high-speed rail system, Whoosh connects Jakarta, Indonesia's largest city, with Bandung in West Java, drastically reducing travel time from over three hours to just 46 minutes. This leap in mobility has delivered more than just faster commutes. It has redefined the travel experience for millions of Indonesians and brought new momentum to economic activity along the railway corridor. ECONOMIC BENEFITS According to PT Kereta Cepat Indonesia China (KCIC), the Indonesian-Chinese railway joint venture has safely carried over 10.6 million passengers on 31,614 trips as of July 25, covering more than 4.9 million kilometers since its commercial operations began. With up to 62 daily train services and a peak daily ridership of 26,800, public enthusiasm continues to rise. For Sophia, a 37-year-old mother of two who commutes between Jakarta and Bandung every weekend, the benefits are deeply personal. "Whoosh has become a proper mode of transportation. Time is valuable; we shouldn't have to spend so much of it on the road," she said. Beyond convenience, Whoosh has also triggered notable economic benefits. Business owners like 45-year-old Akhyar, who runs a cake shop near Bandung's train station, have witnessed a sharp rise in customers, many of whom are tourists brought in by the high-speed service. Similarly, the Indonesian Travel Agent Association reported growing demand for group tours using Whoosh, especially among students and corporate travelers. "It helps promote Jakarta as a tourist destination, especially for ASEAN visitors," said the association's Chairwoman, Pauline Suharno, using the acronym for the Association of Southeast Asian Nations. "Among ASEAN countries, only Indonesia has a high-speed train." According to Segara Research Institute Executive Director Piter Abdullah, Whoosh is not only a game changer for mobility, but a catalyst for new economic activity. "Mobility is a driver of the economy. The growing number of passengers shows that people are increasingly recognizing the value of time efficiency and travel comfort. High-speed rail can trigger the emergence of new economic centers," he said. This project represents a crucial first step in developing rail-based transportation across Java Island, unlocking new zones of productivity and investment, he added. ENHANCED CONNECTIVITY The areas surrounding Whoosh's stations, such as Tegalluar, Padalarang, and Karawang, are already seeing the rise of new residential communities, commercial centers, and upgraded infrastructure. Halim Station, near Jakarta's international airport, is evolving into a critical intermodal hub, supporting seamless air-rail connectivity. "Whoosh has significantly enhanced regional connectivity and land value," said KCIC's Corporate Communications Manager Emir Monti. "It's also generated thousands of jobs and supported the growth of a full high-speed rail industry chain in Indonesia." Emir believed that Whoosh is not just a transport upgrade, but a strategic leap in Indonesia's development. "We didn't expect such a high level of enthusiasm at the beginning. But Whoosh has truly improved connectivity between Jakarta and Bandung and brought real convenience to the public," he said. He also emphasized the project's role as a model for international collaboration and local capacity building. "This isn't just about importing equipment; it's about building an integrated system. Through our joint venture with Chinese partners, we've transferred technology, trained local talent, and developed Indonesian professionals in operations, maintenance, and management," he said. Today, all train drivers and mechanics are Indonesians, a testament to the project's commitment to localization and sustainability. "From technology to management, our local teams are growing through hands-on experience," said Emir. "Whoosh didn't just bring infrastructure. It built a foundation for future Indonesian expertise." GROWING EXPECTATION According to Dwiyana Slamet Riyadi, president director of KCIC, Whoosh is the first full-scale application of Chinese high-speed rail technology abroad, making Indonesia the first country outside China to operate trains at a speed of 350 kilometers per hour. "Chinese high-speed rail technology is truly advanced. They're already developing trains that can reach 450 kilometers per hour. So I think it's natural that China is the technological benchmark for Indonesia's high-speed rail development," he said. He also noted that Indonesia's success with Whoosh has drawn attention from other Southeast Asian nations eager to replicate its achievement. "Indonesia is now seen as a model for high-speed rail development in ASEAN," he said. As demand continues to climb and public satisfaction remains high, expectations are rising. German expatriate Ali Kurtze, a long-time Jakarta resident and self-proclaimed loyal Whoosh rider, expressed hope for further expansion. "Fast, punctual, comfortable, I love this route. I hope the high-speed rail will one day extend to Surabaya or even Sumatra," said Kurtze. "That would completely transform Indonesia's transportation landscape." -- Xinhua
The Star
4 hours ago
- The Star
US Treasury chief says trade talks with China to continue this week in Sweden
US Treasury Secretary Scott Bessent has said that he would meet his Chinese counterparts in Sweden this week to continue trade talks between the two countries, suggesting the current pause in sky-high tariffs aimed at each other could be extended. Bessent told Fox Business that he would speak with Chinese officials on Monday and Tuesday for a third round of high-level talks in Stockholm – following face-to-face discussions he held with Chinese Vice Premier He Lifeng in Geneva and London – to work out a likely extension of the pause beyond mid-August. Beijing has yet to confirm the Stockholm talks, but Swedish Prime Minister Ulf Kristersson said in a post on X on Tuesday that his country would play host to the US-China negotiations next week. After US President Donald Trump's announcement of 'reciprocal' tariffs on April 2, Washington and Beijing raised punitive levies on each other's exports to triple-digit percentage levels. Since then, trade relations have thawed somewhat as the countries have engaged in talks, marked by a June telephone call between Trump and Chinese President Xi Jinping. On Monday Bessent said that the talks were 'in a good place', a sanguine take on negotiations echoed by Beijing's embassy in Washington, which said 'new progress' had been made in resolving each other's economic and trade concerns. Separately on Tuesday, Trump told reporters that Xi has invited him to visit Beijing and that he would accept. He added that exports of rare earth and magnets to the US may no longer be a thorny issue. 'President Xi has invited me to China, and we'll probably be doing that in the not too distant future, a little bit out, but not too distant. And I've been invited by a lot of people, and we'll make those decisions pretty soon,' he said during a meeting in the Oval Office with Philippine President Ferdinand Marcos Jnr. 'We have a very good relationship. In fact, the magnets, which is a little complex piece of material, but the magnets are coming out very well. They're sending them in record numbers. We're getting along with China very well,' said Trump. In a possible signal of improving ties, China's market administration watchdog said earlier on Tuesday that it had suspended its anti-trust probe into American multinational chemical company DuPont. Beijing launched its investigation into DuPont in early April, after Trump began slapping new levies on Chinese goods. Bessent said on Monday that he hoped to raise in future talks the issue of China's purchases of Russian and Iranian oil. Beijing's embassy in Washington responded to those comments by saying that 'the international community, including China, has conducted normal cooperation with Iran and Russia within the framework of international law. 'This is reasonable and lawful without harm done to any third party, and deserves to be respected and protected,' said the embassy. China observers said that Beijing would oppose Washington's bid to link tariff talks to Chinese relations with US adversaries. 'Beijing sees its ties and transactions with Russia and Iran as just and fair and conforms to international laws and may be unlikely to make compromises for the sake of US lowering tariffs,' said Xin Qiang, an international studies professor at Fudan University in Shanghai. 'Beijing is mindful not to fall into the trap as US uses tariffs to pursue its geopolitical agenda.' During the Fox Business interview Bessent also mentioned his expectations for China's government to rein in manufacturing overcapacity and launch structural adjustments to stimulate domestic consumption to benefit American manufacturing. 'President Trump is remaking the US into a manufacturing economy. If we could do that together – more U.S. manufacturing, more Chinese consumption – that would be a home run for the Chinese Communist Party and the global economy,' he said. - SOUTH CHINA MORNING POST
Borneo Post
5 hours ago
- Borneo Post
PM Anwar to visit Indonesia for first annual consultation with Prabowo
Anwar (right) arrives at Halim Perdanakusuma International Airport and is greeted by the President of Indonesia, Prabowo Subianto. – Bernama photo JAKARTA (July 27): Prime Minister Datuk Seri Anwar Ibrahim will embark on a two-day working visit to Indonesia starting Monday to attend the 13th Annual Consultation with President Prabowo Subianto – the first such meeting between the two leaders. Anwar will be accompanied by Sarawak Premier Tan Sri Abang Johari Abang Openg; Sabah Chief Minister Datuk Seri Hajiji Noor; Foreign Minister Datuk Seri Mohamad Hasan; Home Affairs Minister Datuk Seri Saifuddin Nasution Ismail; Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz; Education Minister Fadhlina Sidek. 'This Annual Consultation represents the highest-level bilateral mechanism between Malaysia and Indonesia, aimed at reinforcing strategic and comprehensive cooperation,' Malaysian Ambassador to Indonesia Datuk Syed Mohamad Hasrin Tengku Hussin said during a media briefing here on Sunday. He said the Annual Consultation, convened alternately between the two countries since 2006, reflects the strong political commitment of both nations to enhance collaboration across a wide range of sectors, including trade and investment, defence and security, connectivity, food security and education. 'The leaders are expected to exchange views on regional and global issues of mutual interest,' he said, adding that a Joint Statement will be issued at the conclusion of the consultation. The previous consultation was held in 2017, making this a timely opportunity for both leaders to reaffirm their strategic partnership and explore new areas of cooperation in response to current regional and global challenges. Syed Mohamad Hasrin said the leaders will also witness the exchange of four Memoranda of Understanding (MoUs) in the areas of land border, health cooperation and information and communications technology. During the visit, he said the Prime Minister is also scheduled to visit the ASEAN Secretariat in Jakarta, at the invitation of the ASEAN Secretary-General, Dr Kao Kim Hourn. Anwar will also deliver a Policy Speech on ASEAN in the context of Malaysia's ASEAN Chairmanship in 2025, underscoring Malaysia's ongoing commitment to regional integration and community-building. In 2024, Indonesia ranked as Malaysia's sixth-largest global trading partner and the second largest within ASEAN. Bilateral trade increased by 4.5 per cent from RM111.21 billion (US$24.39 billion) in 2023 to RM116.29 billion (US$25.5 billion) in 2024. – Bernama anwar ibrahim bilateral relations indonesia Prabowo Subianto
