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Business Recorder
21-06-2025
- Business
- Business Recorder
HK stocks log worst week since April
SHANGHAI: Hong Kong stocks rebounded on Friday but still logged their steepest weekly decline since April, as the lack of new stimulus measures this week weighed on investor sentiment amid broader global tensions surrounding the Iran-Israel conflict. The Hong Kong stock market had witnessed a steady recovery over recent weeks, rebounding from losses triggered by reciprocal tariffs imposed by US President Donald Trump. The benchmark Hang Seng Index has advanced 17% year-to-date. 'The Lujiazui forum this week offered no new measures to boost the capital market, which was a potential letdown for some investors,' said Jason Chan, senior investment strategist at Bank of East Asia. The two-day gathering of top financial regulators and market participants at the annual Lujiazui Forum wrapped up on Thursday, delivering few surprises for market participants. Sentiment is expected to remain weak, with the persistent risk of an escalation in Middle East tensions continuing to cast a shadow over markets, Chan said. 'The market could stay range-bound in the short term.' China kept its benchmark lending rates unchanged on Friday, as expected, after rolling out sweeping monetary easing measures last month to support the economy. China's blue-chip CSI300 Index closed 0.1% higher, while the Shanghai Composite Index lost 0.1%. Hong Kong benchmark Hang Seng was up 1.3%. For the week, the Hang Seng Index was down 1.5%, the biggest drop since the week of April 7, while the CSI300 Index was down 0.5%. Hong Kong's pullback was also exacerbated by fading interest from mainland investors. Their purchases via the Stock Connect scheme have slowed sharply in recent weeks, with net buying this week amounting to just 16 billion yuan ($2.23 billion) — only 20% of the peak recorded in April. The CSI Liquor Index rose 2.2%, leading gains onshore, after the index lost 12% this year on weak consumer demand and a government ban on civil servants dining out. Amid uncertainties related to China-US trade friction, onshore share valuations may be range-bound at low levels near term, UBS strategist Lei Meng said in a note. 'We expect limited downside, and potential upside catalysts mainly from stronger policy easing, the continual entry of medium or long-term funds and structural reforms,' Meng said. Shares of 'Blind Box' toymaker Pop Mart dropped nearly 4% after state media outlet People's Daily called for stricter regulation of the blind box industry, citing expert views. The stock has fallen 13% this week, but soared 165% this year.
RTHK
20-06-2025
- Business
- RTHK
Hang Seng Index ends bad week with a rebound
Hang Seng Index ends bad week with a rebound The Hang Seng Index ended the day with gains of 292.74 points, or 1.26 percent, at 23,530.48. File photo: RTHK Hong Kong stocks rebounded on Friday but still logged their steepest weekly decline since April, as the lack of new stimulus measures this week weighed on investor sentiment amid broader global tensions surrounding the Iran-Israel conflict. The benchmark Hang Seng Index ended the day with gains of 292.74 points, or 1.26 percent, at 23,530.48. The Hang Seng China Enterprises Index rose 1.38 percent to end at 8,527.07 while the Hang Seng Tech Index rose 0.88 percent to end at 5,133.14. Across the border, the benchmark Shanghai Composite Index ended down 0.07 percent at 3,359.90 while the Shenzhen Component Index closed 0.47 percent lower at 10,005.03. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 0.84 percent to close at 2,009.89. The Hong Kong stock market had witnessed a steady recovery over recent weeks, rebounding from losses triggered by reciprocal tariffs imposed by US President Donald Trump. The benchmark Hang Seng Index has advanced 17 percent in the year to date. "The Lujiazui forum this week offered no new measures to boost the capital market, which was a potential letdown for some investors," said Jason Chan, senior investment strategist at Bank of East Asia. The two-day gathering of top financial regulators and market participants at the annual Lujiazui Forum wrapped up on Thursday, delivering few surprises for market participants. Sentiment is expected to remain weak, with the persistent risk of an escalation in Middle East tensions continuing to cast a shadow over markets, Chan said. "The market could stay range-bound in the short term." China kept its benchmark lending rates unchanged on Friday, as expected, after rolling out sweeping monetary easing measures last month to support the economy. For the week, the Hang Seng Index was down 1.5 percent, the biggest drop since the week of April 7, while the CSI300 Index was down 0.5 percent. (Reuters/Xinhua)
Mint
20-06-2025
- Business
- Mint
HK stocks log worst week since April as absence of fresh stimulus weighs
(Updates to market close) SHANGHAI, June 20 (Reuters) - Hong Kong stocks rebounded on Friday but still logged their steepest weekly decline since April, as the lack of new stimulus measures this week weighed on investor sentiment amid broader global tensions surrounding the Iran-Israel conflict. The Hong Kong stock market had witnessed a steady recovery over recent weeks, rebounding from losses triggered by reciprocal tariffs imposed by U.S. President Donald Trump. The benchmark Hang Seng Index has advanced 17% year-to-date. "The Lujiazui forum this week offered no new measures to boost the capital market, which was a potential letdown for some investors," said Jason Chan, senior investment strategist at Bank of East Asia. The two-day gathering of top financial regulators and market participants at the annual Lujiazui Forum wrapped up on Thursday, delivering few surprises for market participants. Sentiment is expected to remain weak, with the persistent risk of an escalation in Middle East tensions continuing to cast a shadow over markets, Chan said. "The market could stay range-bound in the short term." China kept its benchmark lending rates unchanged on Friday, as expected, after rolling out sweeping monetary easing measures last month to support the economy. China's blue-chip CSI300 Index closed 0.1% higher, while the Shanghai Composite Index lost 0.1%. Hong Kong benchmark Hang Seng was up 1.3%. For the week, the Hang Seng Index was down 1.5%, the biggest drop since the week of April 7, while the CSI300 Index was down 0.5%. Hong Kong's pullback was also exacerbated by fading interest from mainland investors. Their purchases via the Stock Connect scheme have slowed sharply in recent weeks, with net buying this week amounting to just 16 billion yuan ($2.23 billion) — only 20% of the peak recorded in April. The CSI Liquor Index rose 2.2%, leading gains onshore, after the index lost 12% this year on weak consumer demand and a government ban on civil servants dining out. Amid uncertainties related to China-U.S. trade friction, onshore share valuations may be range-bound at low levels near term, UBS strategist Lei Meng said in a note. "We expect limited downside, and potential upside catalysts mainly from stronger policy easing, the continual entry of medium or long-term funds and structural reforms," Meng said. Shares of "Blind Box" toymaker Pop Mart dropped nearly 4% after state media outlet People's Daily called for stricter regulation of the blind box industry, citing expert views. The stock has fallen 13% this week, but soared 165% this year. ($1 = 7.1837 Chinese yuan) (Reporting by Shanghai Newsroom; Editing by Sherry Jacob-Phillips)
Business Recorder
12-06-2025
- Business
- Business Recorder
China markets flat, Hong Kong dips as initial trade optimism wanes
HONG KONG: Chinese stocks steadied after an initial fall and Hong Kong shares were trading lower on Thursday, led by declines in the tech sector, as markets struggled to sustain positive momentum from Sino-U.S. trade talks that provided few concrete details. A trade truce between the world's two biggest economies was back on track, according to U.S President Donald Trump, a day after negotiators from Washington and Beijing agreed on a framework to ease bilateral retaliatory tariffs. Under the agreement, Beijing will lift export restrictions on rare earths minerals while the U.S. will restore Chinese students' access to its universities, Trump said on Truth Social. Yet the terms remain subject to final approvals with details notably absent. The 55% tariffs on Chinese imports will also remain unchanged, U.S. Commerce Secretary Howard Lutnick said. 'We still don't know if what Trump says will actually happen. It's disappointing that the tariffs rates was not dialled down at all and tech curbs on China was not even mentioned,' said Jason Chan, senior investment strategist at Bank of East Asia, Hong Kong. The talks left key issues like chip exports unaddressed, meaning conflicts are set to emerge in the future, while no one knows how long the current truce will last, he added. China, HK stocks steady as US-China trade talks offer few surprises At the midday trading break, China's blue-chip CSI 300 Index was up 0.03%, reversing an earlier loss of as much as 0.6% and climbing back to a three-week high touched in the previous session. Hong Kong's benchmark Hang Seng index fell 0.5% to pull back from its highest level in nearly three months. Tech shares led losses in both onshore and offshore markets. The CSI Semiconductor Index declined 1.1%, while the Hang Seng Tech Index lost 1% in Hong Kong. Among major losers, chipmaker SMIC declined 1.7% to a one-week low. Alibaba weakened around 2% and EV-maker Xpeng slid 5%. The CSI Rare Earth Index edged up 0.4% after slipping nearly 1% in the morning session, touching the highest level since November. Chinese markets have been struggling to recover from trade shocks for the past two months, after Trump announced sweeping tariffs on April 2 that threatened the global trade system. The CSI 300 Index has barely eked out any gains since then, while Hong Kong's benchmark Hang Seng Index has climbed around 4%, with both lagging the around 10% bounce in the MSCI World Index. Wang Zhuo, partner at Zhuozhu Investment, said the market is less sensitive to trade talks and investors are shifting their focus to economic fundamentals. 'The key for China now is to bolster manufacturers' confidence, and break the deflationary trend,' Wang said.
New Straits Times
12-06-2025
- Business
- New Straits Times
China markets flat, Hong Kong dips as initial trade optimism wanes
HONG KONG: Chinese stocks steadied after an initial fall and Hong Kong shares were trading lower on Thursday, led by declines in the tech sector, as markets struggled to sustain positive momentum from Sino-US trade talks that provided few concrete details. A trade truce between the world's two biggest economies was back on track, according to U.S President Donald Trump, a day after negotiators from Washington and Beijing agreed on a framework to ease bilateral retaliatory tariffs. Under the agreement, Beijing will lift export restrictions on rare earths minerals while the US will restore Chinese students' access to its universities, Trump said on Truth Social. Yet the terms remain subject to final approvals with details notably absent. The 55 per cent tariffs on Chinese imports will also remain unchanged, US Commerce Secretary Howard Lutnick said. "We still don't know if what Trump says will actually happen. It's disappointing that the tariffs rates was not dialled down at all and tech curbs on China was not even mentioned," said Jason Chan, senior investment strategist at Bank of East Asia, Hong Kong. The talks left key issues like chip exports unaddressed, meaning conflicts are set to emerge in the future, while no one knows how long the current truce will last, he added. At the midday trading break, China's blue-chip CSI 300 Index was up 0.03 per cent, reversing an earlier loss of as much as 0.6 per cent and climbing back to a three-week high touched in the previous session. Hong Kong's benchmark Hang Seng index fell 0.5 per cent to pull back from its highest level in nearly three months. Tech shares led losses in both onshore and offshore markets. The CSI Semiconductor Index declined 1.1 per cent, while the Hang Seng Tech Index lost 1 per cent in Hong Kong. Among major losers, chipmaker SMIC declined 1.7 per cent to a one-week low. Alibaba weakened around 2 per cent and EV-maker Xpeng slid 5 per cent. The CSI Rare Earth Index edged up 0.4 per cent after slipping nearly 1 per cent in the morning session, touching the highest level since November. Chinese markets have been struggling to recover from trade shocks for the past two months, after Trump announced sweeping tariffs on April 2 that threatened the global trade system. The CSI 300 Index has barely eked out any gains since then, while Hong Kong's benchmark Hang Seng Index has climbed around 4 per cent, with both lagging the around 10 per cent bounce in the MSCI World Index. Wang Zhuo, partner at Zhuozhu Investment, said the market is less sensitive to trade talks and investors are shifting their focus to economic fundamentals.
