Latest news with #SouthboundConnect
The Standard
08-07-2025
- Business
- The Standard
China will broaden onshore access to offshore bonds via Bond Connect
HKMA said the measure to expand the scope of investors of the Southbound Connect come into today. REUTERS
Forbes
26-06-2025
- Business
- Forbes
China Market Update: Winning Streak Snapped By Profit Taking
CLN Asian equities closed mixed, as Japan and India outperformed and the US dollar weakened overnight. Hong Kong's four-day winning streak and Mainland China's three-day winning streak both came to an end with profit taking overnight. Both markets bounced around the room on volumes that were well above their 1-year averages. It was very interesting that Southbound Stock Connect volumes accounted for 64% of turnover in Hong Kong today. I can't recall a percentage that high, as Mainland investors poured $673 million into Hong Kong-listed stocks and ETFs, net of selling. Does the high Connect percentage indicate a lack of foreign investor participation? I suspect so, which makes me bullish, as the charts of the Shanghai, Shenzhen, Hang Seng, and Hang Seng Tech all continue to grind higher. So far this year, Southbound buying of Hong Kong stocks is up to $92.86 billion versus 2024's total of $103 billion, 2023's total of only $40.70 billion, and 2022's total of $49.20 billion. Recent outperformers, including pharmaceutical, brokerage, and insurance stocks, were hit with profit taking on no negative news, while mining and energy outperformed. In fact, we had positive news from the National Development & Reform Commission (NDRC) that the third round of funds for the consumption subsidies will be allocated in July. The third round will be financed by the issuance of RMB 200 billion worth of ultra-long-dated Treasury bonds. Hong Kong's most heavily traded stock was brokerage firm Guotai Junan International, which fell -4.32%, after rising +198% yesterday on its cryptocurrency trading approval. Alibaba fell -2.86% though I am not seeing any news. Alibaba will release its annual report after the close, which will give me something to read on my flight home tonight. China Travel gained +85% on reports that Hong Kong tourist numbers were strong during May's Golden Week holiday. Other tourist stocks were up around +1%, though I suspect short sellers got rolled on China Travel's surge. gained +0.23% as founder Richard Liu attends the 'Summer Davos' in Tianjin. Shockingly, there has been little Western media coverage of the event, which makes me suspect something good is occurring. Harvard's Graham Allison stated at the event, 'I would be surprised if in the next week or so we do not see a memorandum of understanding (MOU) coming out of the discussions that have been going on between Bessent and He…,' according to the South China Morning Post. I've not seen that elsewhere, but it would be a significant catalyst. Privately-held robotics company Unitree stated that the firm, founded in 2016 with one employee, now has 1,000 employees and RMB 1 billion in annual revenue. If you didn't catch our Nasdaq bell ringing yesterday, take a look. A Unitree humanoid robot rang the bell! All in all, a quiet night! New Content Read our latest article: Navigating Global Crosswinds: Carbon Markets Respond to Tariff Tactics and Executive Orders Please click here to read Chart1 Chart2 Chart3 Chart4 Chart5 Chart6
RTHK
06-06-2025
- Business
- RTHK
HK to include renminbi counters in Southbound Connect
HK to include renminbi counters in Southbound Connect Finance chief Paul Chan says the city will accelerate the inclusion of renminbi counters in the city's Southbound Stock Connect scheme. Photo: RTHK Sun Yu, vice chairman and chief executive of Bank of China (Hong Kong), says Hong Kong is gradually transitioning from an offshore renminbi payment centre to a renminbi financing hub. Photo: RTHK Kenneth Hui, executive director (external) of the Hong Kong Monetary Authority (HKMA), says the use of renminbi has increased rapidly in recent years thanks to the rising cross-border trade. Photo: RTHK Financial Secretary Paul Chan on Friday reiterated that Hong Kong is speeding up the inclusion of renminbi counters in the Southbound Stock Connect programme as part of efforts to attract more renminbi funds while pushing ahead the internationalisation of the currency. The remarks came in a keynote speech Chan delivered at the Bank of China RMB Internationalisation Forum 2025, where he noted that such developments are not aimed at challenging the status of other international currencies. "The internationalisation of the renminbi has never been aimed at challenging or replacing the status of other currencies. Therefore, it is unnecessary for some people to view it with a zero-sum game mindset," he told participants. "Hong Kong is a testing ground for the country's high-level financial opening-up, the city also serves as a firewall," he said. The finance chief said the city will make good use of its unique advantages linking domestic markets with the world to seize on the opportunities brought by economic and trade cooperation between the country and Asean, the Middle East and the Belt and Road countries. The SAR government, he added, will also continue to promote the internationalisation of the renminbi by increasing the liquidity of offshore renminbi, increasing the issuance of renminbi bonds, speeding up the inclusion of renminbi counters in the Southbound Connect under the Stock Connect programmes, as well as improving connectivity with the mainland's rapid payment system to facilitate capital flows. Echoing Chan, Sun Yu, vice chairman and chief executive of Bank of China (Hong Kong), noted that the SAR is gradually transitioning from an offshore renminbi payment centre to a renminbi financing hub, due to surging interest. "The variety of renminbi products in Hong Kong is gradually increasing, and the related financial infrastructure and supporting facilities are also becoming more and more developed," Sun said. "This has attracted more international investors, numerous multilateral institutions, and non-bank financial institutions to express their interest and allocation needs for renminbi assets. It also reflects that Hong Kong is evolving from an offshore renminbi payment centre into a renminbi financing centre, investment centre, as well as risk management centre." Sun also said that as global financial markets have become more volatile in recent times, Hong Kong can play a significant role to help fend off financial risks by leveraging its mature financial markets as well as regulatory strengths. Separately, Kenneth Hui, executive director (external) of the Hong Kong Monetary Authority, noted that renminbi bonds issued in the SAR exceeded 1 trillion yuan last year, which was more than the overall deposits in the city. He added that the use of the renminbi has increased rapidly in recent years thanks to rising cross-border trade, and that the proportion of renminbi used in the mainland's global trade has doubled over the past three years to 30 percent, as the renminbi trade settlement processed by banks in the SAR increased to 15 trillion yuan last year from 7 trillion in 2021.
