Latest news with #A-shares
BusinessToday
05-07-2025
- Business
- BusinessToday
Hang Seng Ends Lower Amid Global Trade Jitters
The Hong Kong stock market closed in the red on July 4, with the Hang Seng Index falling 0.64% to end the day at 23,916.06, weighed down by global trade concerns and uncertainty over US economic policy. Investor sentiment remained cautious as markets awaited potential new US tariffs, with analysts warning that heightened geopolitical tension could further pressure regional equities. The technology and export-heavy sectors were among the hardest hit, dragging the index lower. While Chinese A-shares edged higher by 0.3% to 0.4% amid hopes of domestic stimulus, Hong Kong stocks underperformed, reflecting local economic fragility and external risks. Tech giants such as Alibaba Group Holding Ltd and Inc posted notable losses, contributing to the market's decline. Adding to investor unease was stronger-than-expected US jobs data, which dented hopes for a near-term interest rate cut by the Federal Reserve. The robust labour figures pushed Treasury yields higher and triggered a pullback in risk assets across global markets. The Hang Seng's loss on July 4 followed a broader weekly decline of 1.5%, underscoring growing investor caution heading into the second half of the year. With global trade policies and monetary decisions in flux, analysts expect continued volatility in the Hong Kong market in the coming days. However, hopes for targeted stimulus in mainland China may offer some support. Bottomline: Hong Kong equities ended lower amid global trade uncertainty and strong US economic data, as investors weighed external risks against potential regional policy support. Related
Korea Herald
25-06-2025
- Business
- Korea Herald
QFIIs Gain Access to Onshore ETF Options As A-share Market Opening Deepens
GUANGZHOU, China, June 25, 2025 /PRNewswire/ -- Qualified Foreign Institutional Investors (QFIIs) will be permitted to trade onshore ETF options starting October 9, exclusively for hedging purposes, according to the China Securities Regulatory Commission. This marks another major step in opening China's capital markets, following the introduction of commodity futures and options, which is believed to attract long-term foreign capital to allocate to A-shares by expanding risk management tools and enhancing market stability. Among the eligible products are E Fund STAR 50 ETF (Code: 588080), E Fund ChiNext ETF (Code: 159915), and E Fund SZSE 100 ETF (Code: 159901), managed by E Fund Management (E Fund), the largest mutual fund manager in China. Data from China's State Administration of Foreign Exchange revealed that cross-border capital of non-banking sectors saw a net inflow of US$ 33 billion in May 2025, with foreign holdings of domestic stocks increasing month-on-month, reflecting growing foreign investor confidence and deeper integration of A-shares with global markets. With its broad ETF product lineup and low management fees, E Fund has positioned itself as the preferred partner for foreign investors. According to Wind, from January 2024 to April 2025, E Fund's ETF assets grew by US$ 53.5 billion, with net inflows totaling US$ 41.2 billion, both ranking first in the market. About E Fund Established in 2001, E Fund is a leading comprehensive mutual fund manager in China with over RMB 3.5 trillion (USD 497 billion) under management. It offers investment solutions to onshore and offshore clients, helping clients achieve long-term sustainable investment performances. E Fund's clients include both individuals and institutions, ranging from central banks, sovereign wealth funds, social security funds, pension funds, insurance and reinsurance companies, to corporates and banks. Long-term oriented, it has been focusing on the investment management business since inception and believes in the power of in-depth research and time in investing. It is a pioneer and leading practitioner in responsible investments in China and is widely recognized as one of the most trusted and outstanding Chinese asset managers. AuM includes subsidiaries. Data as of March 31, 2025. FX rate is sourced from PBoC.
Business Times
03-06-2025
- Business
- Business Times
Chinese firms brush off US tariff risks with domestic confidence
[HONG KONG] When US President Donald Trump took aim at China with record tariffs, the country's firms shrugged it off. Corporate China has since gone out of its way to assuage investors and tout its ability to weather tariff risks, citing experiences from Trump's first administration and that their businesses ultimately are not that exposed to the US. Overseas revenue only accounts for 10 to 15 per cent of total revenue for Shanghai or Shenzhen-listed companies – so-called A-shares – and close to 12 per cent for the country's benchmark CSI300 index, according to Steven Sun, head of research at HSBC Qianhai Securities. 'The US specifically only accounts for less than 2 per cent of CSI300's total revenue.' This means there is a fundamentally limited impact on A-share earnings. 'China is less reliant on the US for its exports than before,' Sun said, noting that the US accounted for around 20 per cent of China's exports in 2018 compared with around 14 per cent today. Companies are also highlighting a shift in supply chains, and are doubling down on research and development to boost growth, according to a Bloomberg News analysis of corporate transcripts and filings in April and May. Luxshare Precision Industry, a major Apple supplier, told shareholders that products exported to the US were no longer produced in China since the start of the trade war from 2018. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'Although tariffs may affect the consumption sentiment of importing countries, we have always relied on diversified development to buffer various challenges,' chairperson Wang Laichun said on an earnings call in early May. 'Even if the market is slightly affected, we can still digest it and ensure the steady development of the company.' Testing defiance Companies' defiant mindset is being put to the test as US-China tensions are rising again, following a brief surge of relief induced by the tariff truce last month. Trump – hours after claiming China violated its agreement with the US – expressed confidence a conversation with Chinese President Xi Jinping could ease fresh trade tensions, though China has since accused the US of violating their recent trade deal and vowed to take measures to defend its interests, dimming prospects of further bilateral talks. Shenzhen-based DR Corp, which makes jewellery products, sped up the process to make its supply chain more global, though it remains optimistic about the US market in the long run and will continue to increase investment and promotion for the country. 'In the face of uncertainty in the US market, we have developed a new strategy to deal with the situation: we will consider brand building and retail operations separately, and focus on increasing investment in brand building,' according to a conference call transcript in May. When US-China tensions peaked with tariffs as high as 145 per cent for Chinese goods, domestically-focused corporations such as Wens Foodstuff Group, which offers livestock and poultry farming services, said the trade war has little impact on its production costs. 'The company predicts the possible impact of the Sino-US trade war in advance, and reserves a certain amount of medium- and long-term feed raw materials when prices are relatively low,' according to a late-April earnings call transcript. The domestic recovery of China's economy is more important for Chinese firms, said Bloomberg Intelligence analyst Marvin Chen. China has been dealing with US tariff hikes for the past seven to eight years, so corporates have already been realigning supply chains, according to Chen. 'Tariffs may impact corporate sentiment, but the expectation is that domestic policy support will do enough to offset the impact.' Lingering export risks Still, first-quarter earnings have been a mixed bag. 'While the stimulus measures implemented at the end of 2024 are beginning to feed through to the domestic economy, the results from China tech giants have diverged somewhat, due to competition and a fragile consumer recovery,' Chen said. In mid-April, Chinese appliance maker Midea Group said Chinese exports face more uncertainties this year, while trade frictions caused by tariffs have increased the operating costs of home appliance companies. Factory orders meanwhile slumped the most in April since September 2022 as US tariffs took a toll on smaller exporters despite the trade war truce, while Chinese earnings saw a sharp downward revision that month as tariffs peaked. Even though rates have come down since, they are still higher than before, which will put pressure on Chinese exporters, HSBC's Sun said. 'Most companies have remained cautious about the trajectory of tariffs, with 2025 consensus earnings forecasts being mostly flat since Apr 12.' 'There is still high uncertainty in what happens in 90 days, if a trade deal can be reached, and if so what the details will be,' Chen said, adding that impacts from additional tariffs can start to be observed during mid-year results. BLOOMBERG
Hindustan Times
16-05-2025
- Business
- Hindustan Times
China, HK stocks fall with earnings, US tech restrictions in focus
HONG KONG, - Chinese and Hong Kong stocks extended their losses on Friday, as market sentiment came under pressure from renewed U.S.-China tech tensions and a disappointing earnings report from Alibaba. ** At the midday break, the Shanghai Composite index was down 0.52% at 3,363.32 points. ** China's blue-chip CSI300 index was down 0.57%, with its financial sector sub-index lower by 1.31%, the consumer staples sector down 1.04%, the real estate index down 0.61% and the healthcare sub-index down 0.36%. ** In Hong Kong, the Hang Seng Index was down 0.81% at 23,262.80. ** Index heavyweight Alibaba Group lost 5.3% by midday after the e-commerce giant posted quarterly revenue below analysts' estimates on Thursday. ** On the geopolitical front, the U.S. Commerce Department is considering placing more Chinese companies, including ChangXin Memory , on its restricted export list, a person familiar with the matter told Reuters. ** The Bureau of Industry and Security is also looking at adding subsidiaries of Semiconductor Manufacturing International Corporation and Yangtze Memory Technologies Co to the "Entity List", the source said. ** "Market focus has shifted to the U.S.-China competition on other fields, such as semiconductor and healthcare, after the two countries significantly reduced tariffs for each other," said Dickie Wong, executive director of research at Kingston Securities. ** While U.S.-China tariff truce is a positive surprise to the market, a durable resolution remains challenging, given the complex bilateral relationship, Morgan Stanley analysts said in a note, adding sentiment on mainland A-shares edged down this week with lower trading volume. ** The smaller Shenzhen index was up 0.34%, the start-up board ChiNext Composite index was higher by 0.16% and Shanghai's tech-focused STAR50 index was down 0.59%. ** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.15% while Japan's Nikkei index was down 0.04%.
