Latest news with #ChiNext
Business Times
08-07-2025
- Business
- Business Times
Shenzhen bourse nudges China firms to speed up IPO applications
[BEIJING] China's Shenzhen Stock Exchange has urged brokers to speed up applications for companies to list on the ChiNext board as officials seek to boost private enterprise and reignite the economy under threat from rising tariffs. The exchange, China's second largest after Shanghai, called in a dozen investment banks to a meeting last month to get them to quicken the pace of applications for companies seeking to sell shares on the tech board, according to sources familiar with the matter. At the meeting, the bourse indicated it would expedite the approval process and loosen some requirements, the sources said, asking not to be identified discussing private information. The regulator aims to ensure that all enterprises that have submitted applications can receive a review and feedback this year, the sources said. After a years-long clampdown on share sales and tighter scrutiny of private enterprises, Beijing has shifted its stance as economic challenges, including a trade war, have mounted. Earlier this year, President Xi Jinping presided over a meeting with key entrepreneurs including Alibaba Group Holding co-founder Jack Ma, underscoring a softer stance. At a forum last month, China Securities Regulatory Commission chairman Wu Qing said that China will accelerate the development of a capital market better suited to supporting technological innovation and more actively cultivate long-term capital for the market. Regulators are also seeking to stoke share sales on the mainland, as listings from Chinese firms have surged in Hong Kong. The Shenzhen exchange late last month also published rules to make it easier for technology firms already listed on the ChiNext board to raise funds to improve their ability to innovate. The exchange did not immediately respond to an emailed request for a comment. China's stock exchanges in Shanghai, Shenzhen and Beijing accepted 150 new applications for initial public offering (IPO) in June, the highest monthly tally this year. The majority was accepted by Beijing, according to exchange data. Listings in Hong Kong hit the highest since December 2022 last month, as a rally in the Asian financial hub's stocks drove a rush for share sales. Listings in China plunged for three straight years, reaching 222 billion yuan last year, down from 1.24 trillion yuan in 2021, according to data compiled by Bloomberg. So far this year, China has seen 114 billion yuan in listings. BLOOMBERG
Straits Times
08-07-2025
- Business
- Straits Times
Shenzhen bourse nudges China firms to speed up IPO applications
Sign up now: Get ST's newsletters delivered to your inbox Officials seek to boost private enterprise and reignite the economy under threat from rising US tariffs. BEIJING – China's Shenzhen Stock Exchange has urged brokers to speed up applications for companies to list on the ChiNext board as officials seek to boost private enterprise and reignite the economy under threat from rising US tariffs. The exchange, China's second largest after Shanghai, called in a dozen investment banks to a meeting in June to get them to quicken the pace of applications for companies seeking to sell shares on the tech board, according to people familiar with the matter. At the meeting, the bourse indicated it would expedite the approval process and loosen some requirements, the people said. The regulator aims to ensure that all enterprises that have submitted applications can receive a review and feedback this year, the people said. After a years-long clampdown on share sales and tighter scrutiny of private enterprises, Beijing has shifted its stance as economic challenges, including a trade war, have mounted. Earlier in 2025, President Xi Jinping presided over a meeting with key entrepreneurs including Alibaba Group Holding co-founder Jack Ma, underscoring a softer stance. At a forum in June, China Securities Regulatory Commission chairman Wu Qing said that China will accelerate the development of a capital market better suited to supporting technological innovation and more actively cultivate long-term capital for the market. Regulators are also seeking to stoke share sales on the mainland, as listings from Chinese firms have surged in Hong Kong. The Shenzhen exchange late in June also published rules to make it easier for technology firms already listed on the ChiNext board to raise funds to improve their ability to innovate. China's stock exchanges in Shanghai, Shenzhen and Beijing accepted 150 new applications for initial public offering in June, the highest monthly tally this year. The majority was accepted by Beijing, according to exchange data. Listings in Hong Kong hit the highest since December 2022 in June, as a rally in the Asian financial hub's stocks drove a rush for share sales. Listings in China plunged for three straight years, reaching 222 billion yuan (S$39.5 billion) in 2024, down from 1.24 trillion yuan in 2021, according to data compiled by Bloomberg. So far in 2025, China has seen 114 billion yuan in listings. BLOOMBERG
Bloomberg
08-07-2025
- Business
- Bloomberg
Shenzhen Bourse Nudges China Firms to Speed Up IPO Applications
China's Shenzhen Stock Exchange has urged brokers to speed up applications for companies to list on the ChiNext board as officials seek to boost private enterprise and reignite the economy under threat from rising tariffs. The exchange, China's second largest after Shanghai, called in a dozen investment banks to a meeting last month to get them to quicken the pace of applications for companies seeking to sell shares on the tech board, according to people familiar with the matter.
Yahoo
25-06-2025
- Business
- Yahoo
QFIIs Gain Access to Onshore ETF Options As A-share Market Opening Deepens
GUANGZHOU, China, June 25, 2025 /PRNewswire/ -- Qualified Foreign Institutional Investors (QFIIs) will be permitted to trade onshore ETF options starting October 9, exclusively for hedging purposes, according to the China Securities Regulatory Commission. This marks another major step in opening China's capital markets, following the introduction of commodity futures and options, which is believed to attract long-term foreign capital to allocate to A-shares by expanding risk management tools and enhancing market stability. Among the eligible products are E Fund STAR 50 ETF (Code: 588080), E Fund ChiNext ETF (Code: 159915), and E Fund SZSE 100 ETF (Code: 159901), managed by E Fund Management (E Fund), the largest mutual fund manager in China. The SSE STAR 50 Index, tracking the 50 largest and most liquid stocks on the STAR Market, is strategically concentrated in semiconductors. Its relevant funds have grown to US$ 25.4 Billion, making it the fourth-largest broad-based index of A-share market. The ChiNext Index comprises 100 high-growth firms from the ChiNext Board, with 92% exposure to strategic sectors like new-generation information technology, new energy vehicle and healthcare. Since 2021, its constituents have delivered robust revenue and net profit CAGR of 21% and 14%, respectively. The Shenzhen 100 Index aggregates 100 blue-chip leaders from the Shenzhen Stock Exchange, and emphasizes sectors such as advanced manufacturing, digital economy, and green energy, accounting for 73% weight collectively. 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. View original content to download multimedia: SOURCE E Fund Management
Qatar Tribune
11-05-2025
- Business
- Qatar Tribune
Tariff war: China's stock market pays the price
Agencies Beijing China is feeling the heat from the tariff war. The nation's stock market is reeling, and the country's rigid stance risks deepening the economic downturn. Early stimulus efforts offered little relief, and Beijing hesitates to roll out new measures, betting that Washington will yield. On April 28th, China's stock market endured a significant downturn, amplifying concerns about economic instability. The Shanghai Composite Index slid by 0.2 percent, the Shenzhen Component Index dropped 0.62 percent, and the ChiNext index declined 0.65 percent. Over 4,100 stocks recorded losses, with real estate taking a sharp 3 percent hit. Investors remain cautious as Beijing refrains from deploying bold stimulus measures, reinforcing fears of an uncertain economic strategy. This hesitation fuels speculation about China's long-term approach to financial resilience and market recovery. China's fiscal challenges deepened in the first quarter, as government spending grew by 4.2 percent year-on-year while revenue declined by 1.1 percent. This imbalance resulted in a record-high fiscal deficit of 1.26 trillion yuan ($173 billion). To mitigate financial pressures, local governments accelerated borrowing, issuing nearly 1 trillion yuan in special bonds—a staggering 60 percent increase from the previous year. Meanwhile, the People's Bank of China (PBOC) stepped in, boosting loan allocations to state-owned investors to stabilize the stock market. Despite these interventions, economic uncertainty persists. Policy advisers warn that additional measures might be necessary, yet Beijing remains cautious, resisting sweeping stimulus initiatives. As financial constraints tighten, China faces difficult choices about balancing stability and economic resilience in an evolving global landscape. Unlike the US, which has moved toward negotiation by easing its tariff stance, China remains steadfast, refusing to make the first move. Under President Xi Jinping's leadership, Beijing is maintaining a posture of resilience, signalling confidence rather than reacting impulsively. However, this calculated patience carries significant risks. Analysts caution that economic stability could falter without substantial stimulus—potentially up to 2 trillion yuan—to sustain growth above 4 percent. Wall Street forecasts suggest that China might introduce new financial measures worth between 1 and 1.5 trillion yuan in the second half of the year, but even this may not be enough to neutralize the ongoing tariff impact. As global markets watch closely, Beijing must balance its commitment to economic sovereignty with the urgency of sustaining stability. Liu Ting, Chief China Economist at Nomura, warns that announcing stimulus measures prematurely could be perceived as Beijing conceding under pressure—a strategic misstep in the ongoing trade standoff. Such an action might suggest internal instability, eroding confidence in China's economic leadership. Yet, delaying intervention carries its own risks. Economic strains could worsen, prolonging recovery and increasing dependence on later policy interventions. Beijing must carefully balance assertiveness with pragmatism, ensuring that any stimulus aligns with broader financial stability and long-term resilience. As the trade war intensifies, US Treasury Secretary Scott Bessent has confirmed ongoing negotiations with 17 key trade partners, deliberately excluding China. This calculated diplomatic move aims to isolate Beijing, exerting pressure to reconsider its economic stance. Analysts warn that China cannot endure Trump's steep 145% tariff levels indefinitely, pushing Beijing toward inevitable policy shifts to mitigate financial strain. Compounding these challenges, China's foreign policy has taken a confrontational turn. Senior fellow Gordon Chang highlights Beijing's escalating disputes with the Philippines, Taiwan, South Korea, and Australia—an approach that appears counterproductive at a time when it desperately needs allies. This growing diplomatic isolation raises concerns about deeper systemic instability, fuelling speculation that Xi Jinping's leadership may be entering a decisive and potentially precarious phase. China has maintained a firm public stance against tariff concessions, yet emerging reports indicate a subtle rollback on duties for critical US imports. Reductions on semiconductors, aviation equipment, industrial chemicals, and medical devices suggest Beijing is making quiet adjustments to safeguard economic stability. Despite these shifts, the Chinese Communist Party remains publicly silent, unwilling to acknowledge reliance on American trade. Analysts contend that open admission would undermine political credibility, forcing Beijing to balance pragmatic economic decisions with maintaining a facade of resilience in the ongoing trade dispute. China's state media continues to project resilience, reassuring the public that the economy can endure ongoing turbulence. However, behind the scenes, signs of adjustment are emerging. The Wall Street Journal reports that Beijing is weighing the removal of its hefty 125 percent tariffs on select US imports, signalling a quiet yet significant shift in policy to curb industrial disruptions. If China continues this pattern of quiet concessions while maintaining an unyielding public stance, it risks deepening economic instability rather than securing long-term resilience. Xi Jinping's reluctance to openly adjust policy in response to mounting trade pressures may prolong financial uncertainty, erode investor confidence, and limit Beijing's flexibility in global negotiations. The CCP's emphasis on political strength over economic pragmatism could lead to stagnation, forcing heavier reliance on state-controlled interventions. Without a strategic recalibration, China may find itself in an increasingly precarious position—isolated diplomatically, strained financially, and vulnerable to long-term economic decline. As global markets evolve and trade alliances shift, Beijing's approach may determine whether China stabilizes or continues on a downward trajectory.
