Latest news with #AsianEquities
Forbes
4 days ago
- Business
- Forbes
China Market Update: Profit Taking Caps Strong Week For China Markets, Week In Review
CLN Asian equities were lower overnight after a significant rally for the week. Hong Kong and Mainland China both closed lower, though the latter outperformed. Analysts cited profit taking after a strong week, though the looming August 1st tariff deadline also likely weighed on sentiment. China's Premier Li met with European leaders at the EU-China Business Symposium. European leaders cited industrial overcapacity as a primary concern. It is good, then, that addressing overcapacity, especially in autos and solar panels, has become a top priority for China's government. At the Summit, Premier is quoted by the South China Morning Post as having said, 'Amid rising protectionism and unilateralism, if China and Europe join hands in upholding free trade and multilateralism while deepening economic and trade collaboration, they can serve as a stabilizing anchor for economic globalization and the stability of global industrial and supply chains'. The deal with Japan is interesting as it involves a half-billion US dollar investment in the United States. We have advocated for some time that investment commitments are a superior alternative to tariffs as they do not punish US consumers and weigh on growth. Could this happen with China? We will see. Though, some security guardrails around the investments would have to be put in place. The America First Investment Plan memo provides for these guardrails, in theory, including a note that the US should consider employing what is basically a variable interest entity (VIE) structure for foreign investments. However, they did not call it that, of course. Semiconductor Manufacturing International (SMIC) gained +4.98% overnight as UBS issued callable bull/bear contracts (CBBCs) on the semiconductor stock in Hong Kong. UBS also issued new CBBCs for Meituan, Ping An, BYD, Hong Kong Exchanges & Clearing, and Tencent. Health care and industrials were the top-performing sectors in Hong Kong. Industrials continue to benefit from the perceived renewed infrastructure push in China, signified by the Tibet dam. However, not all were higher overnight as China Power Construction fell -3.10%, Inner Mongolia Baotou Steel fell -2.00%, and China Energy Engineering fell -9.60%. China will report industrial profits over the weekend. Internet stocks were mostly lower overnight. Alibaba fell -1.91% and Meituan fell -3.20%. Markets have mostly taken the instant commerce promotion rules in stride, as these stocks had a positive performance week. Profit taking was likely the culprit behind last night's price action. New Content Read our latest article: KraneShares KOID ETF: Humanoid Robot Rings Nasdaq Opening Bell Please click here to read Chart1 Chart2 Chart3 Chart4 Chart5 Chart6
Forbes
5 days ago
- Business
- Forbes
China Market Update: Law Draft Focuses On Overcapacity And Price Wars
CLN Asian equities were mixed overnight, as Japan and Mainland China outperformed. It was a relatively quiet night with Hong Kong and Mainland China semis higher on President Trump's AI Action Plan as Mainland China had a very broad rally led by Shenzhen growth stocks while mega cap banks, oil, and telecom lagged. Remember our thesis that foreign investors will always favor growth stocks when investing in China! Hong Kong and Mainland China were led by healthcare and materials. The biggest news item today was the National Development and Reform Commission (NDRC) and State Administration for Market Regulation (SAMR) announced a price law amendment draft that included 'criteria for identifying unfair price behavior' including 'identifying low-priced dumping', 'improve the identification standards of unfair price behaviors such as price collusion' and stated industry leaders 'shall not use their influence or dominant position in the industry to force or bundle sales of goods'. There will be a consequence for such behavior as 'improve the legal responsibility for price violations' such as 'punishment for unfair price behaviors' and for those 'who violate the clearly marked price'. This draft is extensive, though one line that jumps out is 'dumping at a price lower than the cost'. Reuters had a good article on rising commodity prices in China and the government's overcapacity crackdown (I'll put it on X/Twitter @ahern_brendan). Another thesis is that China's deflationary days are over, in addition to China exporting deflation. Hopefully, the restaurant delivery war between Meituan, Alibaba, and will also end. Meituan +0.9% seems to see the writing on the wall as the company held a symposium in Shanghai with participants in its ecosystem, which included restaurant owners voicing concern that the current delivery price war is weighing on restaurant dining. Remember, we had Shanghai's local SAMR meet with Meituan, and Alibaba yesterday. Hong Kong growth stocks were mixed, with Tencent +0.91%, while NetEase -3.25%, CATL -1.24%, and Alibaba -0.5%. Biotech was led higher by WuxiBiologics +3.83% which announced that the 1st half of 2025 revenue will increase ~16% YoY and net income ~56% YoY. Mainland Chinese investors bought $473mm of Hong Kong stocks via Southbound Stock Connect. The State-owned Assets Supervision and Administration Commission (SASAC) met with local SOEs in Beijing to discuss implementing reforms and becoming more efficient. President Xi met with European Commission President Ursula von der Leyen and European Council President Antonio Costa on EU-China relations. Premier Li met with EU Commission Chairman von der Leyen on trade. He will also give a speech at the opening of the 2025 World Artificial Intelligence Conference in Shanghai on July 26th. The China equity rally is a sleeper of a trade (not just YTD but since January 2024), though the renminbi's rally versus the US dollar is even more so. On April 9th, USD/CNY hit 7.34 versus today's close of 7.15. Yes, the US dollar index is off nearly twice as much in percentage terms versus CNY's gains. Maybe countries should accuse the US of being a currency manipulator! Just kidding! New Content Read our latest article: KraneShares KOID ETF: Humanoid Robot Rings Nasdaq Opening Bell Please click here to read Chart1 Chart2 Chart3 Chart4 Chart5 Chart6
Yahoo
22-07-2025
- Business
- Yahoo
Undiscovered Gems in Asia Three Stocks to Watch July 2025
As global markets navigate a complex landscape of inflationary pressures and geopolitical tensions, Asian equities have shown resilience with Chinese indices posting gains and Japan's markets experiencing modest growth. Amidst these dynamics, investors are increasingly looking towards small-cap stocks in Asia for potential opportunities, driven by the region's economic developments and unique market conditions. Identifying promising stocks often involves assessing their ability to adapt to changing economic environments while capitalizing on regional growth trends. Top 10 Undiscovered Gems With Strong Fundamentals In Asia Name Debt To Equity Revenue Growth Earnings Growth Health Rating Techno Ryowa 0.12% 8.04% 26.08% ★★★★★★ System ResearchLtd 10.96% 10.64% 14.90% ★★★★★★ Konishi 0.15% 0.46% 12.50% ★★★★★★ YagiLtd 30.90% -8.11% 26.14% ★★★★★☆ Torigoe 9.03% 4.76% 8.35% ★★★★★☆ E J Holdings 21.62% 4.30% 3.77% ★★★★★☆ Uoriki 0.19% 3.73% 10.97% ★★★★★☆ CHANGE HoldingsInc 65.87% 30.07% 16.98% ★★★★★☆ Nippon Care Supply 12.88% 10.36% 0.01% ★★★★☆☆ Toho Bank 112.58% 4.41% 32.71% ★★★★☆☆ Click here to see the full list of 2605 stocks from our Asian Undiscovered Gems With Strong Fundamentals screener. We'll examine a selection from our screener results. Nanjing Julong Science & TechnologyLTD Simply Wall St Value Rating: ★★★★☆☆ Overview: Nanjing Julong Science & Technology Co., LTD focuses on the research, development, production, and sale of new polymer materials and their composites both in China and internationally, with a market cap of CN¥3.92 billion. Operations: Julong generates revenue primarily through the sale of polymer materials and composites. The company's cost structure includes expenses related to research, development, and production. Its net profit margin has shown variability in recent periods. Nanjing Julong Science & Technology Co., a smaller player in the chemicals sector, has shown promising growth with earnings rising 10.6% last year, outpacing the industry average of 3.5%. Its debt to equity ratio increased from 17.9% to 56% over five years, yet remains satisfactory at a net debt to equity of 37.7%. Despite high share price volatility recently, the company repurchased shares worth CNY 29.73 million this year and declared a cash dividend of CNY 2.50 per ten shares for 2024, signaling confidence in its financial health and commitment to shareholder returns. Delve into the full analysis health report here for a deeper understanding of Nanjing Julong Science & TechnologyLTD. Gain insights into Nanjing Julong Science & TechnologyLTD's past trends and performance with our Past report. Ongoal Technology Simply Wall St Value Rating: ★★★★☆☆ Overview: Ongoal Technology Co., Ltd. focuses on the research, design, production, and sale of material handling and automation equipment in China with a market capitalization of CN¥8.74 billion. Operations: The company generates revenue primarily from its special equipment manufacturing segment, which reported CN¥2.09 billion. Ongoal Technology, a relatively small player in the machinery sector, is showing intriguing dynamics. Its price-to-earnings ratio of 42x undercuts the industry average of 44.6x, suggesting potential value. However, its debt to equity has climbed from 34.7% to 81.7% over five years, indicating rising leverage concerns despite a satisfactory net debt to equity ratio of 27.8%. The company's EBIT covers interest payments comfortably at 11.6 times, though earnings dipped by 34% last year against a modest industry growth rate of 1%. Recent shareholder meetings and dividend affirmations highlight active governance and shareholder engagement strategies. Get an in-depth perspective on Ongoal Technology's performance by reading our health report here. Review our historical performance report to gain insights into Ongoal Technology's's past performance. AblePrint Technology Simply Wall St Value Rating: ★★★★★☆ Overview: AblePrint Technology Co., Ltd. is a process solution provider addressing process issues across various industries in Taiwan and internationally, with a market capitalization of NT$31.60 billion. Operations: AblePrint Technology generates revenue primarily from its Pneumatic and Thermal Process Solutions segment, contributing NT$1.39 billion, followed by Automation System Solutions at NT$277.22 million. AblePrint Technology, a small player in the semiconductor industry, has shown robust earnings growth of 33% over the past year, surpassing the industry's 10.8%. Despite its volatile share price recently, it maintains high-quality earnings and generates positive free cash flow. The company reported first-quarter sales of TWD 481.55 million compared to TWD 402.15 million last year; however, net income was lower at TWD 226.09 million from TWD 271.46 million previously due to increased expenses or investment activities likely impacting margins. With more cash than total debt, AblePrint seems financially stable for future endeavors and potential growth opportunities in an expanding market sector. Take a closer look at AblePrint Technology's potential here in our health report. Explore historical data to track AblePrint Technology's performance over time in our Past section. Next Steps Get an in-depth perspective on all 2605 Asian Undiscovered Gems With Strong Fundamentals by using our screener here. Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance. Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets. Contemplating Other Strategies? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SZSE:300644 SZSE:301662 and TPEX:7734. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
18-07-2025
- Business
- Forbes
China Market Update: Hong Kong Higher, Regulators Comment On Instant Commerce, Week In Review
CLN Asian equities ended the week largely higher overnight, as Hong Kong and Australia outperformed, while India underperformed. Positive momentum is driving the Hang Seng, Hang Seng Tech, Shanghai, and Shenzhen indexes higher as growth stocks and subsectors outperformed. Hong Kong was led higher by Alibaba, which gained +2.93%, Tencent, which gained +0.39%, Xiaomi, which gained +1.51%, and Meituan, which gained +1.43%. It was a broad rally as electric vehicles did well, including NIO, which gained +4.63% on its new model release, BYD, which gained +2.1%, and CATL gained +5.61%. Nonferrous metals, oil, insurance, and technology hardware also had positive performance. The most important news came out after the close as the State Administration for Market Regulation (SAMR) announced that it had 'carried out administrative interviews and required takeaway platform enterprises to compete rationally'. SAMR met with which is owned by Alibaba, Meituan, and The agency urged the companies to 'strictly abide by the laws and regulations such as the e-commerce law' and the Anti-Unfair Competition Law. UBS is predicting the restaurant delivery war between Alibaba, Meituan, and will peak in August. The consequence will be higher revenue year-over-year (YoY) in Q2 financial results, though net income is going to plunge, as Meituan's net income is predicted to fall by -27% YoY, Alibaba -5% YoY, and -42% YoY. Mainland investors bought a net $755 million worth of Hong Kong-listed stocks and ETFs today via Southbound Stock Connect. Southbound Stock Connect volume as a percentage of Hong Kong turnover has declined indicating that maybe, just maybe, foreign investors are starting to notice the rally. A US-China trade deal would be a significant catalyst, in my opinion. Mainland China had a good day as healthcare stocks kept their positive momentum, along with beverages, non-ferrous metals, and the chemical industry. The Ministry of Industry and Information Technology (MIIT) held a press conference focused on ten industries' growth and 'adjusting structure, optimizing supply and eliminating backward production capacity.' Industries in focus include steel, non-ferrous metals, petrochemicals, and building materials. AI, along with copper, aluminum, and gold, were cited as focus areas as well. The South China Morning Post wrote today that some speculate further 'anti-involution' policy direction could come from the month-end Politburo meeting, though we do not know the exact date yet. Nvidia's Jensen Huang met with the Ministry of Commerce's Wang Wentao on the China AI opportunity. Huang also met with the founder of privately-held AI startup Minimax, a private company valued at $4B based on recent financing details, Yan Junjie. Unitree Robotics, known officially as Hangzhou Yushu Technology, filed paperwork with the CSRC, indicating a path to an IPO that revealed founder Wang Xingxing owns 23.8% of the company. The National Development and Reform Commission (NDRC) held a press conference on incentivizing foreign companies to invest in China, with an emphasis on capital markets. The People's Bank of China (PBOC), China's central bank, will release its decision on the Loan Prime Rate (LPR), which helps set mortgage rates, on Monday, though most expect no change at this time. Live Webinar Join us on Tuesday, July 22, 10:00 am EDT for: China Mid-Year Outlook: Trade Deal Loading, Consumption & Innovation Locked In Please click here to register New Content Read our latest article: KraneShares KOID ETF: Humanoid Robot Rings Nasdaq Opening Bell Please click here to read 1 Chart1 Chart2 Chart3 Chart4 Chart5 Chart6
Forbes
17-07-2025
- Automotive
- Forbes
China Market Update: EV Anti-Involution Drives Gains As Biotech Breaks Out
CLN Asian equities had a good day as Thailand, Indonesia, and Pakistan outperformed, while India posted a small loss. Hong Kong bounced around the room, while Shanghai and Shenzhen grinded higher, going from the lower left to the upper right. It was a fairly quiet night, as Premier Li and the State Council's meeting on 'strengthening the domestic big cycle' and limiting EV price wars, i.e. 'anti-involution', were front page news. The implications of the government curtailing 'overcapacity' in the auto, steel, cement, E-Commerce, and solar industries are significant for corporate balance sheets, ending domestic deflation, and China not exporting deflation. Li Auto gained +9.73% after announcing that a new model is open for pre-sales, as Geely Auto gained +4.16%, BYD gained +1.06%, XPeng gained +1.14%, though Xiaomi fell -2.01% and CATL fell -0.27%. Biotech stocks in both Hong Kong and Mainland China continued to outperform overnight, as Akeso gained +10.71% after starting Phase 3 trials for a metastatic colorectal cancer treatment. The space continues to benefit from drug releases, distribution deals, and favorable policy support. BeOne, formerly known as Beigene, gained +10.6%, Jiangsu Hengrui gained +2.06%, Sino Biopharmaceutical gained +5.9%, CSPC Pharma gained +3.58%, and WuXi Apptec gained +2.42%. Internet names were mixed, as Alibaba fell -1.14%, Meituan gained +1.13%, fell -0.16%, fell -0.88%, Kuaishou fell -0.65%, and Tencent Music Entertainment gained +1.78%. South China Morning Post had an article about Meituan complaining about 'irrational competition' from Alibaba and after the latter's entrance into the restaurant delivery space sparked a price war. Another Chinese city announced local plans to curb the price war. Mainland investors bought $236 million worth of Hong Kong-listed stocks and ETFs via Southbound Stock Connect, though Tencent, which gained +0.10% overnight, remains a funding source and was sold by Mainland investors. Hong Kong and Mainland China-listed electronic equipment makers, software, and semiconductor stocks had very strong days. Nvidia's Jensen Huang's China trip and comments on chip sale approvals and the quality of Chinese electric vehicles (EVs) and AI garnered significant attention. According to the China Association of Automobile Manufacturers (CAAM), China's auto exports increased +10.4% year-over-year (YoY) to 3.07 million in June. After the close, the Ministry of Finance (MoF) adjusted the tax rate on ultra-luxury cars with price tags above RMB 900,000 and canceled taxes on used vehicles. China and Australia singed a memorandum of understanding (MOU) to review the China-Australia Free Trade Agreement following Prime Minister Anthony Albanese's six-day trip to China. There was also more media chatter of US-China trade deal percolating. Live Webinar Join us on Tuesday, July 22, 10:00 am EDT for: China Mid-Year Outlook: Trade Deal Loading, Consumption & Innovation Locked In Please click here to register New Content Read our latest article: KraneShares KOID ETF: Humanoid Robot Rings Nasdaq Opening Bell Please click here to read Chart1 Chart2 Chart3 Chart4 Chart5 Chart6
