Latest news with #KevinLiu
Business Times
22-07-2025
- Business
- Business Times
Chinese investors snap up Hong Kong stocks as flows near record
[HONG KONG] Mainland Chinese investors' purchase of Hong Kong-listed stocks is approaching an annual record, driving a rally that has made a key benchmark in the city one of the world's best performers. Southbound net inflows expanded by another HK$2.7 billion (S$440.8 million) on Tuesday (Jul 22), taking this year's total to HK$800 billion, a whisker away from 2024's previous record of HK$808 billion. The accelerated buying came as the Hang Seng China Enterprises Index gained 24 per cent this year, in a rally fuelled by DeepSeek-led technology breakthroughs, mainland investors' hunt for quality assets and global funds' diversification needs. Also driving the southbound flows is a less robust onshore market, where the CSI 300 benchmark has risen 4.7 per cent in the same period. Southbound flows may exceed HK$1 trillion this year, according to estimates by China International Capital Corp (CICC) analysts including Kevin Liu. They expect the purchases to taper in the current half year as mainland mutual and insurance funds run low on dry powder. Mutual funds may add only HK$100 billion for the rest of the year before they approach the 50 per cent cap for Hong Kong equity positions that applies to most funds, while insurance firms may buy another HK$200 billion, CICC's analysts estimate. The level of mainland investor participation has climbed with the inflows, with southbound turnover accounting for 47 per cent of the Hong Kong market's year-to-date average and up about 10 percentage points from 2024's level. Still, there may be room for retail demand to increase, as exchange-traded funds' turnover was less than 1 per cent of the total last month under the stock link between Hong Kong and the mainland. BLOOMBERG
Business Recorder
24-06-2025
- Business
- Business Recorder
HK stocks close up as southbound inflows hit three-week high
SHANGHAI: Hong Kong shares ended higher on Monday, lifted by the strongest southbound inflows via the Stock Connect in three weeks, even as investors remained cautious over the outlook for tighter cash conditions in the market. China stocks were also up. China's blue-chip CSI300 Index closed up 0.3%, while the Shanghai Composite Index gained 0.7%. Hong Kong benchmark Hang Seng was up 0.7%. Onshore investors bought a net 7.9 billion yuan ($1.11 billion) of Hong Kong shares via the Stock Connect on Monday, the highest since May 30. Mainland investors helped drive a rally in Hong Kong shares earlier this year, but their participation has tapered off in the past two months. Hua Hong Semiconductor and SMIC jumped around 4.5% each, after media reported that the US government is weighing additional restrictions on China, including revoking waivers that allow global chip makers to access American technology in China. Meanwhile, the Hong Kong dollar slipped to 7.85 per US dollar on Monday, hitting the weaker end of its trading band for the second time since May 2023. The move may prompt the Hong Kong Monetary Authority to drain liquidity from the banking system to support the currency. Hong Kong market liquidity is unlikely to ease further and may even tighten as Hong Kong Interbank Offered Rates (HIBOR) have likely bottomed out and southbound inflows have slowed, said Kevin Liu, strategist at China International Capital Corporation (CICC). The overnight HIBOR, a key barometer of liquidity, hovered near a record low at 0.01777%. 'Short-term liquidity tightening, uncertainties surrounding tariff negotiations, weakening economic data, and delays in policy support could all contribute to increased market volatility,' Liu said. China's Coal Index rose 1.6%.
RTHK
23-06-2025
- Business
- RTHK
HK stocks end up on strong Stock Connect inflows
HK stocks end up on strong Stock Connect inflows The Hang Seng Index ended trading on the first day of the week up 158.65 points, or 0.67 percent, at 23,689.13. File photo: RTHK Hong Kong shares ended higher on Monday, lifted by the strongest southbound inflows via the Stock Connect in three weeks, even as investors remained cautious over the outlook for tighter cash conditions in the market. The benchmark Hang Seng Index ended trading on the first day of the week up 158.65 points, or 0.67 percent, at 23,689.13. The Hang Seng China Enterprises Index rose 0.82 percent to end at 8,597.36 while the Hang Seng Tech Index rose 1.05 percent to end at 5,187.01. Onshore investors bought a net 7.9 billion yuan of Hong Kong shares via the Stock Connect on Monday, the highest since May 30. Mainland investors helped drive a rally in Hong Kong shares this year, but their participation has tapered off in the past two months. Hua Hong Semiconductor and SMIC jumped around 4.5 percent each, after media reported that the US government is weighing additional restrictions on China, including revoking waivers that allow global chip makers to access American technology in China. Meanwhile, the Hong Kong dollar slipped to 7.85 per US dollar on Monday, hitting the weaker end of its trading band for the second time since May 2023. The move may prompt the Hong Kong Monetary Authority to drain liquidity from the banking system to support the currency. Hong Kong market liquidity is unlikely to ease further and may even tighten as Hong Kong interbank offered rates (Hibor) have likely bottomed out and southbound inflows have slowed, said Kevin Liu, strategist at China International Capital Corporation. The overnight Hibor, a key barometer of liquidity, hovered near a record low at 0.01777 percent. "Short-term liquidity tightening, uncertainties surrounding tariff negotiations, weakening economic data and delays in policy support could all contribute to increased market volatility," Liu said. Mainland Chinese stocks closed higher on Monday, with the benchmark Shanghai Composite Index up 0.65 percent to 3,381.58. The Shenzhen Component Index closed 0.43 percent higher at 10,048.39. China's Coal Index rose 1.6 percent. Maritime shipping and port shares broadly rose, with Nangjing Port up to 10 percent. (Reuters/Xinhua)
Free Malaysia Today
23-06-2025
- Business
- Free Malaysia Today
Hong Kong stocks edge down as investors eye funding conditions
Hong Kong benchmark Hang Seng was down 0.1%. (EPA Images pic) SHANGHAI : Hong Kong shares were slightly down today, as investors assessed the potential for tighter cash supplies and monitored tensions in the Middle East for a likely hit to sentiment. China stocks were mixed. China's blue-chip CSI300 Index was down 0.2% by the lunch break, while the Shanghai Composite Index gained 0.2%. Hong Kong benchmark Hang Seng was down 0.1%. The Hong Kong dollar slipped to 7.85 per US dollar today, hitting the weak end of its trading band for the second time since May 2023. The move may prompt the Hong Kong Monetary Authority to drain liquidity from the banking system to support the currency. 'Hong Kong market liquidity is unlikely to ease further and may even tighten as Hong Kong Interbank Offered Rates (HIBOR) have likely bottomed out and southbound inflows have slowed,' said Kevin Liu, strategist at China International Capital Corporation (CICC). The overnight HIBOR, a key barometer of liquidity, hovered near a record low at 0.01777%. 'Short-term liquidity tightening, uncertainties surrounding tariff negotiations, weakening economic data, and delays in policy support could all contribute to increased market volatility,' Liu said. Risk sentiment was further limited as global investors waited to see if Iran would retaliate against US attacks on its nuclear sites, with resulting risks to global activity and inflation. China's Coal Index rose 1.3%. Maritime shipping and port shares broadly rose, with Nangjing Port up to 10%. Hua Hong Semi listed in Hong Kong jumped 7%, after media reported that the US government weighs additional restrictions on China, including revoking waivers that allow global chip makers to access American technology in China.
Business Recorder
23-06-2025
- Business
- Business Recorder
Hong Kong stocks edge down as investors eye funding conditions
SHANGHAI: Hong Kong shares were slightly down on Monday, as investors assessed the potential for tighter cash supplies and monitored tensions in the Middle East for a likely hit to sentiment. China stocks were mixed. China's blue-chip CSI300 Index was down 0.2% by the lunch break, while the Shanghai Composite Index gained 0.2%. Hong Kong benchmark Hang Seng was down 0.1%. The Hong Kong dollar slipped to 7.85 per US dollar on Monday, hitting the weak end of its trading band for the second time since May 2023. The move may prompt the Hong Kong Monetary Authority to drain liquidity from the banking system to support the currency. Hong Kong market liquidity is unlikely to ease further and may even tighten as Hong Kong Interbank Offered Rates (HIBOR) have likely bottomed out and southbound inflows have slowed, said Kevin Liu, strategist at China International Capital Corporation (CICC). The overnight HIBOR, a key barometer of liquidity, hovered near a record low at 0.01777%. 'Short-term liquidity tightening, uncertainties surrounding tariff negotiations, weakening economic data, and delays in policy support could all contribute to increased market volatility,' Liu said. Risk sentiment was further limited as global investors waited to see if Iran would retaliate against US attacks on its nuclear sites, with resulting risks to global activity and inflation. China's Coal Index rose 1.3%. Maritime shipping and port shares broadly rose, with Nangjing Port up to 10%.
