Latest news with #ChineseStocks
South China Morning Post
07-07-2025
- Business
- South China Morning Post
Hong Kong's MPF funds earn HK$24,100 per member in first half, research firm says
Hong Kong's Mandatory Provident Fund (MPF) achieved its third-best interim performance as a rally in Chinese stocks this year improved returns and helped lift total assets to the highest level since its inception in 2000. Managers overseeing 379 investment funds under the compulsory retirement scheme generated a combined HK$115 billion (US$14.6 billion) of income from January to June this year, according to MPF Ratings, an independent research firm. That was equivalent to HK$24,100 for each of the 4.8 million MPF members. The funds earned 8.9 per cent on average during the first half versus a 5.2 per cent return a year earlier, a result surpassed only by 10.4 per cent in 2019 and 9.9 per cent in 2017. MPF assets grew 10.6 per cent to HK$1.429 trillion as of June 30, aided also by new contributions from its members. 'The market rally was strong, as the effect of the US-China tariff war was not as bad as feared,' said Kenrick Chung, chief corporate solutions officer at Bay Insurance Brokers in Hong Kong. 'The US-China tariff war also led investors to shift from US assets to different markets, including China and other Asian markets.' Chung added that new listings in Hong Kong also provided great profit opportunities for MPF managers. Initial public offerings (IPOs) soared eightfold to US$13.5 billion in the first half, propelling Hong Kong's stock exchange to the top of the global rankings for the first time since 2019, according to data from the London Stock Exchange Group. Funds investing in Hong Kong and China stocks returned 18.5 per cent in the first half, the best among the fund types. Those focused on European equities earned 15.8 per cent, while balanced funds with global stocks and bonds delivered 13 per cent, according to MPF Ratings.
South China Morning Post
03-07-2025
- Business
- South China Morning Post
Chinese stocks to stagnate in second half on lack of catalysts, top brokerages say
Chinese stocks are likely to tread water in the second half as investors refrain from big bets amid a lack of fresh catalysts, according to the nation's top-ranked brokerages. A deflationary trend and sluggish earnings growth will continue to weigh on yuan-denominated stocks , but state intervention and an economic recovery – albeit weak – will put a floor under the market, according to GF Securities, Industrial Securities and Shenwan Hongyuan Group. China's benchmark CSI 300 Index barely budged in the first half, as investors waited for more policy signals from Beijing to bolster growth and watched the trade talks with the US for positive signs. Meanwhile, the economic recovery was uneven, with retail sales rebounding on a trade-in programme for household appliances, exports holding up on front-loading, and woes lingering in the property market. The yield on the 10-year government bond fell to a record low of 1.597 per cent in January on expectations of interest-rate cuts by the central bank. 'While borrowing costs are falling and liquidity is ample, whether it can trigger a valuation expansion still depends on the fundamentals,' said Liu Chenming, an analyst at GF Securities in Beijing . 'For now, stocks are fairly valued.' The caution contrasts with global investment banks' relatively upbeat views on Hong Kong stocks , which they said would benefit from interest-rate reductions by the Federal Reserve and a reallocation of capital seeking to diversify away from US assets. The Hang Seng Index rose 20 per cent in the first half. GF Securities, Industrial Securities and Shenwan Hongyuan were ranked among mainland China's top four brokerages in the equity strategy category by New Fortune magazine last year.
Zawya
26-06-2025
- Business
- Zawya
Franklin Templeton buying China stocks for first time in years
Multi-billion dollar fund manager Franklin Templeton has started edging back into Chinese stocks for the first time in years, betting that trade tensions with the U.S. have now peaked and that Beijing is fully behind its top tech firms again. Zehrid Osmani, Head of the firm's Global Long-Term Unconstrained team, told Reuters that a group of its funds managing around $2 billion had only started their buying in the last few weeks having had no exposure at all over the last 2-3 years. "We've tip-toed (in)," Osmani said in an interview. "We reduced our underweight which has been sizable in some of our mandates, and in some of our global mandates we've neutralized the China exposure." Hong Kong-listed Chinese tech stocks are up nearly 20% this year, more than treble what the U.S. Nasdaq has made and flow data has shown global investors significantly increasing their buying. Osmani said it had returned largely because after years of spluttering growth, property market and geo-political troubles, and a "Common Prosperity" mantra which crimped top tech firms, China's markets look cheap. President Xi Jinping signalled an end to the tech clampdown by gathering the "captains of industry" earlier this year in a show of Beijing's support, while a willingness by both China and the U.S. to meet at the trade negotiating table was also encouraging, Osmani said. "We're also conscious that China, in terms of policy initiatives, has probably more levers to pull than many other countries in terms of fiscal and monetary policy." "We don't think they've gone aggressive in any of those, and we would like them to be more aggressive on both fronts to really support the economy, but they do have those levers that they can pull."
Reuters
26-06-2025
- Business
- Reuters
Franklin Templeton buying China stocks for first time in years
LONDON, June 25 (Reuters) - Multi-billion dollar fund manager Franklin Templeton (BEN.N), opens new tab has started edging back into Chinese stocks for the first time in years, betting that trade tensions with the U.S. have now peaked and that Beijing is fully behind its top tech firms again. Zehrid Osmani, Head of the firm's Global Long-Term Unconstrained team, told Reuters that a group of its funds managing around $2 billion had only started their buying in the last few weeks having had no exposure at all over the last 2-3 years. "We've tip-toed (in)," Osmani said in an interview. "We reduced our underweight which has been sizable in some of our mandates, and in some of our global mandates we've neutralized the China exposure." Hong Kong-listed Chinese tech stocks (.HSTECH), opens new tab are up nearly 20% this year, more than treble what the U.S. Nasdaq (.NDX), opens new tab has made and flow data has shown global investors significantly increasing their buying. Osmani said it had returned largely because after years of spluttering growth, property market and geo-political troubles, and a "Common Prosperity" mantra which crimped top tech firms, China's markets look cheap. President Xi Jinping signalled an end to the tech clampdown by gathering the "captains of industry" earlier this year in a show of Beijing's support, while a willingness by both China and the U.S. to meet at the trade negotiating table was also encouraging, Osmani said. "We're also conscious that China, in terms of policy initiatives, has probably more levers to pull than many other countries in terms of fiscal and monetary policy." "We don't think they've gone aggressive in any of those, and we would like them to be more aggressive on both fronts to really support the economy, but they do have those levers that they can pull."
Wall Street Journal
25-06-2025
- Business
- Wall Street Journal
Chill in U.S.-China Relations Hits Stock Listings
Wall Street's welcome mat for Chinese stock listings long transcended rocky U.S.-China relations. Increasingly, the stock market relationship is succumbing to distrust between the world's two largest economies. More than 80 Chinese companies have delisted their shares from U.S. exchanges since 2019, according to data provider Wind. Around 275 China-based companies now represent less than 2% of the capitalization of shares traded on the New York Stock Exchange and Nasdaq. The NYSE hasn't hosted a new listing from China since carmaker Zeekr went public in May 2024. Chinese initial public offerings still pour in—in fact, 2024 saw the highest number in years—but most are tiny, highly speculative stocks, not the megabillion-dollar 'red chips' of yesteryear. The 62 Chinese offerings last year raised an average of under $7 million. Some struggle to maintain the minimum 300 public shareholders, a red flag for investors that they could be risky or outright scams.
