Latest news with #ChinaEnterprisesIndex
The Sun
5 days ago
- Business
- The Sun
Kenanga IB debuts Hang Seng China Enterprises Index structured warrants
KUALA LUMPUR: Global investors are increasingly turning to the China and Hong Kong markets to offset the impact of US tariffs, as these Asia-focused markets present more attractive investment opportunities. Kenanga Investment Bank Bhd head of equity markets and group head of derivatives Philip Lim said most investors are eager to access the Chinese market, and the major China Enterprises Index (CEI), which is closely linked to the Hang Seng Index (HSI) in Hong Kong, plays a significant role in this strategy. He said the technology sector, in particular, highlights a divergence between markets, with much of the current tech activity centred in the United States. 'However, investors now seek to participate in the dynamic ecosystem of Hong Kong's tech sector and the broader East Asian market, recognising its growing relevance and potential,' he told reporters after the launch of its first-ever Hang Seng China Enterprises Index (HSCEI) structured warrants today. Lim said that with the recent expansion into Hong Kong, there are also plans to explore opportunities in other industries and sectors, guided by customer demand and data-driven insights from machine learning systems. 'Kenanga remains committed to introducing relevant products to the market, ensuring that offerings align with industry trends and client interests,' he said. Kenanga launched HSCEI structured warrants HSCEI-CAA and HSCEI-HBA, as well as Hang Seng TECH Index structured warrants HSTECH-C30 and HSTECH-H27 under its flagship brand, NagaWarrants. The launch marks a strategic expansion of Kenanga's East Asia footprint, following the introduction of HSI structured warrants HSI-CIW and HSI-HMO in 2021. With HSCEI and HSTECH now listed on Bursa Malaysia, domestic investors will gain diversified access to two of Hong Kong's most influential indices, offering new opportunities to tap into China's financial and technology sectors. The HSCEI tracks heavyweight mainland enterprises listed in Hong Kong, including financial and infrastructure giants such as Industrial and Commercial Bank of China, China Construction Bank, PetroChina and Ping An Insurance. It serves as a key benchmark for tracking the performance of China's largest state-owned enterprises. The HSTECH captures the growth of China's leading tech innovators such as Tencent, Meituan, Xiaomi and With its focus on fast-evolving technology and innovation, HSTECH is ideal for traders with higher risk appetites looking for volatility and growth potential. Kenanga's presence in the structured warrants market is underscored by its 64% market share in HSI warrants. In 2024, the structured warrants segment on Bursa Malaysia recorded a turnover of RM30.3 billion, accounting for about 3.6% of the exchange's total market turnover of RM848.7 billion. The launch of HSCEI and HSTECH structured warrants is expected to broaden market participation, diversify product offerings, and boost overall liquidity, particularly among retail traders already familiar with HSI warrants. Moving on, Lim stated that, given the current low participation rate among retail investors, both local and foreign market volumes are negatively impacted. This situation highlights a key differentiator, he said. Unlike the local market, structured warrants are not limited to a single market. 'If the Hong Kong market, for example, becomes more active, products in demand can be issued and introduced to the Malaysian market. More importantly, the expertise developed by the Malaysian market, particularly through institutions like Kenanga, is essential for the country to enhance its capabilities and upskill within the service industry.' Looking ahead, Lim said Kenanga remains committed to supporting investors through innovation, education and access to global markets.
Yahoo
19-05-2025
- Business
- Yahoo
Options Traders Wary of Trump Treat China Rally With Caution
(Bloomberg) -- The de-escalation of the trade war has brought some relief to the market globally. Yet when it comes to Chinese equities, investors remain reluctant to bet on big gains moving forward. How a Highway Became San Francisco's Newest Park America, 'Nation of Porches' Power-Hungry Data Centers Are Warming Homes in the Nordics Maryland's Credit Rating Gets Downgraded as Governor Blames Trump NJ Transit Train Engineers Strike, Disrupting Travel to NYC The Hang Seng China Enterprises Index of mainland stocks traded in Hong Kong has rebounded almost 17% from its low in April, and the cost of hedging against declines has fallen back to average levels after hitting a high. In the US, the trend is similar for the biggest exchange-traded funds that track Chinese equities. But unlike during last year's stimulus-triggered rally, there's no euphoria this time. While the China Enterprises Index snatched a fifth week of gains, it's still almost 8% below the high it reached in March. Alibaba Group Holding Ltd.'s results last week poured cold water on the high hopes that revived the tech sector earlier this year, and market watchers still expect Donald Trump to keep tariffs at a level that will curtail Chinese exports after the 90-day truce. 'Investors are likely cautious given how unpredictable Trump and his administration has behaved,' said Han Piow Liew, a fund manager at Maitri Asset Management Pte, a family office based in Singapore. 'Investors will have even more reasons to tame their bullishness on China, expecting more uncertain times as the geopolitical drama further unfolds.' Skepticism reigns after the tariff war already hurt trade in the region and slowed China's factory activity. Meanwhile, the latest earnings results were a wake-up call for investors who bet on the nation's big tech companies on hopes for advancements in artificial intelligence, despite intense competition in the space. In a note last week, JPMorgan Chase & Co. strategists including Tony SK Lee wrote that the options market shows a more balanced outlook now, though dealers' positioning suggests traders are net sellers of options. 'Investor demand for upside exposure in Chinese equities was subdued despite progress in US-China trade talks,' the strategists wrote. 'This marks a reversal from the prior eight months, when investors were active buyers, especially of calls during momentum phases.' When the market surged last year on stimulus hopes, traders chasing the rally sent a gauge tracking China Enterprises Index options prices spiking. By contrast, that same measure ended last week at its lowest level since January. In another note, JPMorgan strategists including chair of global research Joyce Chang cautioned that despite the tariff pause, the competition between the nations extends beyond trade — to technology and geopolitics. 'While markets are focused on the 90-day détente and dramatic reduction in tariff levels during this pause, technology competition between the US and China is likely to further broaden and intensify,' they wrote. While both Chinese and US equities have benefited from the easing trade tensions, more needs to be done to restore confidence, according to Dave Mazza, chief executive officer of Roundhill Investments in New York. 'A de-escalation of trade tensions and acts of good faith are important steps for restoring confidence,' he said. 'This could catalyze a resumption of market leadership for the most influential US and China companies in both markets.' Why Apple Still Hasn't Cracked AI Microsoft's CEO on How AI Will Remake Every Company, Including His Cartoon Network's Last Gasp DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race As Nuclear Power Makes a Comeback, South Korea Emerges a Winner ©2025 Bloomberg L.P. Sign in to access your portfolio
Mint
19-05-2025
- Business
- Mint
Options Traders Wary of Trump Treat China Rally With Caution
The de-escalation of the trade war has brought some relief to the market globally. Yet when it comes to Chinese equities, investors remain reluctant to bet on big gains moving forward. The Hang Seng China Enterprises Index of mainland stocks traded in Hong Kong has rebounded almost 17% from its low in April, and the cost of hedging against declines has fallen back to average levels after hitting a high. In the US, the trend is similar for the biggest exchange-traded funds that track Chinese equities. But unlike during last year's stimulus-triggered rally, there's no euphoria this time. While the China Enterprises Index snatched a fifth week of gains, it's still almost 8% below the high it reached in March. Alibaba Group Holding Ltd.'s results last week poured cold water on the high hopes that revived the tech sector earlier this year, and market watchers still expect Donald Trump to keep tariffs at a level that will curtail Chinese exports after the 90-day truce. 'Investors are likely cautious given how unpredictable Trump and his administration has behaved,' said Han Piow Liew, a fund manager at Maitri Asset Management Pte, a family office based in Singapore. 'Investors will have even more reasons to tame their bullishness on China, expecting more uncertain times as the geopolitical drama further unfolds.' Skepticism reigns after the tariff war already hurt trade in the region and slowed China's factory activity. Meanwhile, the latest earnings results were a wake-up call for investors who bet on the nation's big tech companies on hopes for advancements in artificial intelligence, despite intense competition in the space. In a note last week, JPMorgan Chase & Co. strategists including Tony SK Lee wrote that the options market shows a more balanced outlook now, though dealers' positioning suggests traders are net sellers of options. 'Investor demand for upside exposure in Chinese equities was subdued despite progress in US-China trade talks,' the strategists wrote. 'This marks a reversal from the prior eight months, when investors were active buyers, especially of calls during momentum phases.' When the market surged last year on stimulus hopes, traders chasing the rally sent a gauge tracking China Enterprises Index options prices spiking. By contrast, that same measure ended last week at its lowest level since January. In another note, JPMorgan strategists including chair of global research Joyce Chang cautioned that despite the tariff pause, the competition between the nations extends beyond trade — to technology and geopolitics. 'While markets are focused on the 90-day détente and dramatic reduction in tariff levels during this pause, technology competition between the US and China is likely to further broaden and intensify,' they wrote. While both Chinese and US equities have benefited from the easing trade tensions, more needs to be done to restore confidence, according to Dave Mazza, chief executive officer of Roundhill Investments in New York. 'A de-escalation of trade tensions and acts of good faith are important steps for restoring confidence,' he said. 'This could catalyze a resumption of market leadership for the most influential US and China companies in both markets.' This article was generated from an automated news agency feed without modifications to text.
CNN
06-03-2025
- Business
- CNN
Alibaba launches DeepSeek rival, sending stock surging
Chinese tech giant Alibaba unveiled its latest artificial intelligence reasoning model on Thursday, boasting that its capabilities beat rivals like OpenAI and startup DeepSeek. The news prompted Alibaba's Hong Kong-listed shares to close 8% higher and helped boost the Hang Seng's China Enterprises Index. Alibaba touted its new model, QwQ-32B, in an online statement as delivering 'exceptional performance, almost entirely surpassing OpenAI-o1-mini and rivaling the strongest open-source reasoning model, DeepSeek-R1.' OpenAI-o1-mini is the American company's cost-efficient reasoning model released last year. Alibaba added the model has achieved a 'qualitative leap in mathematics, coding, and general capabilities, with overall performance on par with DeepSeek R1,' it said in the statement. The company claimed that its model has 32 billion parameters compared with DeepSeek's R1, which has 671 billion parameters. Fewer parameters imply a model is smaller and more efficient to train. DeepSeek stunned the world in January with its high-performing reasoning model R1 that it said cost far less to train than established Western rivals. Its success has shored up confidence among global investors in Chinese companies' ability to innovate at the time when the US-China tech rivalry intensifies. The Hang Seng China Enterprises Index has surged over 30% since January. Alibaba, the owner of Chinese e-commerce platforms Taobao and Tmall, first launched its ChatGPT-equivalent service Tongyi Qianwen in 2023, after OpenAI launched its industry-defining AI reasoning model. In January, Alibaba released another model, Qwen 2.5 Max, which it said surpassed the performance of DeepSeek's highly acclaimed V3 model, released just a few weeks before. Last week, Alibaba pledged to invest at least 380 billion yuan ($52.4 billion) in its AI and cloud computing infrastructure over the next three years. It said the amount exceeded what it had invested in those areas over the past decade. On Wednesday, Chinese leaders pledged support for 'emerging industries and industries of the future,' including increasing funding for artificial intelligence, humanoid robots and quantum technology.
CNN
06-03-2025
- Business
- CNN
Alibaba launches DeepSeek rival, sending stock surging
Chinese tech giant Alibaba unveiled its latest artificial intelligence reasoning model on Thursday, boasting that its capabilities beat rivals like OpenAI and startup DeepSeek. The news prompted Alibaba's Hong Kong-listed shares to close 8% higher and helped boost the Hang Seng's China Enterprises Index. Alibaba touted its new model, QwQ-32B, in an online statement as delivering 'exceptional performance, almost entirely surpassing OpenAI-o1-mini and rivaling the strongest open-source reasoning model, DeepSeek-R1.' OpenAI-o1-mini is the American company's cost-efficient reasoning model released last year. Alibaba added the model has achieved a 'qualitative leap in mathematics, coding, and general capabilities, with overall performance on par with DeepSeek R1,' it said in the statement. The company claimed that its model has 32 billion parameters compared with DeepSeek's R1, which has 671 billion parameters. Fewer parameters imply a model is smaller and more efficient to train. DeepSeek stunned the world in January with its high-performing reasoning model R1 that it said cost far less to train than established Western rivals. Its success has shored up confidence among global investors in Chinese companies' ability to innovate at the time when the US-China tech rivalry intensifies. The Hang Seng China Enterprises Index has surged over 30% since January. Alibaba, the owner of Chinese e-commerce platforms Taobao and Tmall, first launched its ChatGPT-equivalent service Tongyi Qianwen in 2023, after OpenAI launched its industry-defining AI reasoning model. In January, Alibaba released another model, Qwen 2.5 Max, which it said surpassed the performance of DeepSeek's highly acclaimed V3 model, released just a few weeks before. Last week, Alibaba pledged to invest at least 380 billion yuan ($52.4 billion) in its AI and cloud computing infrastructure over the next three years. It said the amount exceeded what it had invested in those areas over the past decade. On Wednesday, Chinese leaders pledged support for 'emerging industries and industries of the future,' including increasing funding for artificial intelligence, humanoid robots and quantum technology.
