Latest news with #ShanghaiChongyangInvestmentManagement
Business Recorder
30-06-2025
- Business
- Business Recorder
China's yuan rises after midpoint set at highest in nearly 8 months
HONG KONG: China's yuan was firmer against the US dollar on Monday, supported by the central bank's move to raise the daily reference rate to its strongest level in almost eight months. Chinese manufacturing shrank for a third month in June but the figure was within expectations and did not put pressure on the yuan. Prior to the market opening, the People's Bank of China set the midpoint rate at 7.1586 per dollar, its strongest since November 8, 2024 and 95 pips firmer than a Reuters' estimate. The spot yuan is allowed to trade 2% either side of the fixed midpoint each day. The central bank has been gradually allowing some yuan appreciation, investors said. 'The main reason why the central bank has guided the appreciation of the yuan is continued weakness in the US dollar,' Shanghai Chongyang Investment Management said in a note to clients. US President Donald Trump's tariff policies and concerns about their impact on economic growth as well as worries about the indepedence of the Federal Reserve have led to a 10% decline in the dollar index this year. As of 0352 GMT, the yuan was 0.14% higher at 7.1641 to the dollar after trading in a range of 7.1618 to 7.1686. The yuan is up 0.5% against the dollar this month, and 1.9% firmer this year. Shanghai Chongyang also said that the central bank was likely encouraged to allow appreciation after data from the past two months showed that the impact of reciprocal tariffs on Chinese exports has so far been limited. The official purchasing managers' index (PMI) rose to 49.7 in June versus 49.5 in May, below the 50-mark separating growth from contraction, though that was in line with a Reuters forecast. Yuan lower on weak industrial data 'The economic momentum is stable partly due to strong exports… I think monetary policy will stay on hold for now. The policy makers will likely wait and monitor the development of trade war,' said Zhiwei Zhang, chief economist at Pinpoint Asset Management. Offshore yuan traded at 7.163 yuan per dollar, up about 0.15% in Asian trade.
Yahoo
28-02-2025
- Business
- Yahoo
Hedge funds bet on turnaround in unloved China property sector
By Summer Zhen and Jiaxing Li HONG KONG (Reuters) - Some large hedge funds and investors are accumulating long-shunned China property stocks at low prices, anticipating lucrative returns when the sector recovers from its prolonged crisis. Investors said recent positive signs, from improving home prices in top cities to industry leader China Vanke's recapitalization plan, suggest this year will be the turning point for the real estate market. To be sure, they are selective and have set their sights on leading state-backed homebuilders and China's largest online property brokerage. "We have added some large state-owned developers recently, based on the logic of sector turnaround and winners take all," said Wang Qing, chairman at Shanghai Chongyang Investment Management, which runs $5 billion. "Land sales are recovering in first-tier cities, and we noticed that only these few real estate developers are still actively buying land," he said, adding that meant these builders were taking a larger market share. Chinese property has been a top short-selling target through the debt-ridden sector's downturn for more than three years and as a raft of privately-owned property giants, including Evergrande and Sunac China, went bankrupt. The shift in sentiment indicates investors are rebuilding confidence in the sector after the industry consolidation and massive measures introduced by China since September to stabilize the slumping housing market. Hong Kong-based Golden Nest Capital is also dipping into shares of some state-owned developers. "You could say that the sales volume of new homes has declined by half, but the number of developers has decreased even more," said Stanley Tao, CIO at Golden Nest Capital Management. As the sector stabilizes, the rebound in these overlooked stocks will be significant, Tao said. Hong Kong-listed mainland property stocks surged more than 15% this month, making it one of the top performing sectors just behind tech stocks. FUNDS BUY KE HOLDINGS KE Holdings, China's Zillow-like real estate platform, has become a darling among Asia's top hedge funds. Hong Kong's $9 billion Aspex Management built new positions in U.S.-listed KE Holdings by adding 6.51 million shares in the fourth quarter of 2024 with a market value of about $120 million as of the end of 2024, according to its filing with the U.S. Securities and Exchange Commission. WT Asset Management, which manages $4 billion, boosted its stake in KE Holdings by 2.2 million shares worth more than $40 million in the fourth quarter as well. KE Holdings is benefiting from robust sales of secondary homes in big cities after the Lunar New Year and tech advancements, Griffin Chan, a property analyst at Citi Research said in a note this week. Cash-strapped top homebuilder Vanke's bailout by the government in early February further boosted sentiment as many view it as a landmark event that greatly reduces the risk of defaults by another major developer. Shares of KE Holdings and property developers rebounded sharply in February, although many have lost more than 80% over the past three years. "I do think we are close to a turning point on property stocks," said Jon Withaar, head of Asia special situations at Pictet Asset Management. Jon said his entry into property stocks depends on whether there will be more government-backed restructuring and on property price trends. Obviously, the recovery is at the initial stage, and many smaller cities are still struggling with unsold homes. Investors remain divided on the outlook for real estate. "It's more about trading opportunities," said Wang Qi, CIO at UOB Kay Hian Wealth Management. "It's like a flash in the pan, but even a flash in the pan might present three to six months of opportunity. These stocks are very cheap and could rise 50% - that's normal," he said. Sign in to access your portfolio
Reuters
27-02-2025
- Business
- Reuters
Hedge funds bet on turnaround in unloved China property sector
HONG KONG, Feb 27 (Reuters) - Some large hedge funds and investors are accumulating long-shunned China property stocks at low prices, anticipating lucrative returns when the sector recovers from its prolonged crisis. Investors said recent positive signs, from improving home prices in top cities to industry leader China Vanke's recapitalization plan, suggest this year will be the turning point for the real estate market. To be sure, they are selective and have set their sights on leading state-backed homebuilders and China's largest online property brokerage. "We have added some large state-owned developers recently, based on the logic of sector turnaround and winners take all," said Wang Qing, chairman at Shanghai Chongyang Investment Management, which runs $5 billion. "Land sales are recovering in first-tier cities, and we noticed that only these few real estate developers are still actively buying land," he said, adding that meant these builders were taking a larger market share. Chinese property has been a top short-selling target through the debt-ridden sector's downturn for more than three years and as a raft of privately-owned property giants, including Evergrande and Sunac China, went bankrupt. The shift in sentiment indicates investors are rebuilding confidence in the sector after the industry consolidation and massive measures introduced by China since September to stabilize the slumping housing market. Hong Kong-based Golden Nest Capital is also dipping into shares of some state-owned developers. "You could say that the sales volume of new homes has declined by half, but the number of developers has decreased even more," said Stanley Tao, CIO at Golden Nest Capital Management. As the sector stabilizes, the rebound in these overlooked stocks will be significant, Tao said. Hong Kong-listed mainland property stocks surged more than 15% this month, making it one of the top performing sectors just behind tech stocks. KE Holdings , , China's Zillow-like real estate platform, has become a darling among Asia's top hedge funds. Hong Kong's $9 billion Aspex Management built new positions in U.S.-listed KE Holdings by adding 6.51 million shares in the fourth quarter of 2024 with a market value of about $120 million as of the end of 2024, according to its filing with the U.S. Securities and Exchange Commission. WT Asset Management, which manages $4 billion, boosted its stake in KE Holdings by 2.2 million shares worth more than $40 million in the fourth quarter as well. KE Holdings is benefiting from robust sales of secondary homes in big cities after the Lunar New Year and tech advancements, Griffin Chan, a property analyst at Citi Research said in a note this week. Cash-strapped top homebuilder Vanke's bailout by the government in early February further boosted sentiment as many view it as a landmark event that greatly reduces the risk of defaults by another major developer. Shares of KE Holdings and property developers rebounded sharply in February, although many have lost more than 80% over the past three years. "I do think we are close to a turning point on property stocks," said Jon Withaar, head of Asia special situations at Pictet Asset Management. Jon said his entry into property stocks depends on whether there will be more government-backed restructuring and on property price trends. Obviously, the recovery is at the initial stage, and many smaller cities are still struggling with unsold homes. Investors remain divided on the outlook for real estate. "It's more about trading opportunities," said Wang Qi, CIO at UOB Kay Hian Wealth Management. "It's like a flash in the pan, but even a flash in the pan might present three to six months of opportunity. These stocks are very cheap and could rise 50% - that's normal," he said.
