logo
China stocks edge higher even as factory deflation deepens

China stocks edge higher even as factory deflation deepens

SHANGHAI: Mainland China stocks edged up on Wednesday after US President Donald Trump said trade talks with Beijing were progressing well, but gains were limited by factory deflation as firms cut prices amid weak demand. Hong Kong shares inched lower.
At the midday break, the Shanghai Composite index was up 0.3% at 3,507.69 points, while the blue-chip CSI300 index edged 0.32% higher.
The smaller Shenzhen index was up 0.29%, the start-up board ChiNext Composite index traded 0.8% higher and Shanghai's tech-focused STAR50 index dipped 0.35%?.
Trump on Tuesday said he would impose a 50% tariff on imported copper and soon introduce long-threatened levies on semiconductors and pharmaceuticals, broadening his trade war that has rattled markets worldwide.
Trump also said trade talks have been going well with the European Union and China, though he added he is only days away from sending a tariff letter to the EU.
'We have had a really good relationship with China lately, and we're getting along with them very well. They've been very fair on our trade deal, honestly,' Trump said, adding that he has been speaking regularly with Chinese President Xi Jinping.
'It may boost market sentiment in the short term,' said Deng Lijun, analyst, Huajin Securities. 'The new wave of tariff increases did not involve China, and the United States had lifted export restrictions to China for chip design software developers and ethane, and Sino-US trade tensions have eased in the short term,' Deng said, adding that risk appetite for A-shares may rebound once Beijing and Washington reach a tariff deal.
Meanwhile, China's producer deflation deepened to its worst level in almost two years in June as the economy grapples with uncertainty over a global trade war and subdued demand at home, piling pressure on policymakers to roll out more support measures.
'Combined with the persistently negative GDP deflator, deflation remains a concern,' said Lynn Song, chief economist for Greater China at ING.
In Hong Kong, the benchmark Hang Seng Index was down 0.74% at 23,970.39 points, while the Hang Seng China Enterprises Index fell 0.76% to 8,642.44 points.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

PSX records gains as KSE-100 crosses 147,000 in early trade
PSX records gains as KSE-100 crosses 147,000 in early trade

Business Recorder

time37 minutes ago

  • Business Recorder

PSX records gains as KSE-100 crosses 147,000 in early trade

Market sentiments remained positive at the Pakistan Stock Exchange (PSX) as investors reacted positively to a sovereign credit rating upgrade and a steady stream of robust corporate earnings, with the benchmark KSE-100 Index gaining nearly 600 points during the opening hours of trading on Monday. At 10:30am, the benchmark index was hovering at 147,091.44, a gain of 599.81 points or 0.41%. Buying was observed in key sectors including cement, commercial banks, fertiliser, oil and gas exploration companies, OMCs and power generation. Index-heavy stocks, including HUBCO, SNGPL, SSGC, MARI, OGDC, PPL, POL, MEBL and UBL traded in the green. Investor sentiments remained positive, buoyed by Moody's upgrade of Pakistan's sovereign rating and a wave of strong corporate earnings that kept sentiment upbeat. Moody's raised Pakistan's credit rating one notch to Caa1 from Caa2, shifting the outlook to stable. The decision, based on improving external buffers, fiscal consolidation, and progress under the IMF program, has provided a powerful boost to market morale. During the previous week, the PSX climbed to an all-time intraday high of 147,534 points before closing at 146,492 points, up 1,109 points or 0.8% on a week-on-week basis. Internationally, share markets edged higher in Asia on Monday ahead of what is likely to be an eventful week for US interest rate policy, while oil prices slipped as risks to Russian supplies seemed to fade a little. A general risk-on mood saw indices in Japan and Taiwan make record peaks, while Chinese blue chips reached their highest in 10 months. US President Donald Trump now seemed more aligned with Moscow on seeking a peace deal with Ukraine instead of a ceasefire first, after meeting Russian President Vladimir Putin in Alaska on Friday. Trump will meet Ukrainian President Volodymyr Zelenskiy and European leaders later on Monday to discuss the next steps, though actual proposals are vague as yet. The major economic event of the week will be the Kansas City Federal Reserve's August 21-23 Jackson Hole symposium, where Chair Jerome Powell is due to speak on the economic outlook and the central bank's policy framework. Markets imply around an 85% chance of a quarter-point rate cut at the Fed's meeting on September 17, and are priced for a further easing by December. The prospect of lower borrowing costs globally has underpinned stock markets, and Japan's Nikkei firmed 0.9% to a fresh record high. MSCI's broadest index of Asia-Pacific shares outside Japan was a fraction lower, having hit a four-year top last week. Chinese blue chips added 1.0%, bringing gains so far this quarter to almost 8%. EUROSTOXX 50 futures and FTSE futures rose 0.2%, while DAX futures firmed 0.1%. This is an intra-day update

Chinese CPEC IPPs press Pakistan govt for Rs475bn dues
Chinese CPEC IPPs press Pakistan govt for Rs475bn dues

Business Recorder

time2 hours ago

  • Business Recorder

Chinese CPEC IPPs press Pakistan govt for Rs475bn dues

ISLAMABAD: As the date of Prime Minister Shehbaz Sharif's visit to China draws closer, Chinese CPEC Independent Power Producers (IPPs) have mounted pressure on the government for clearance of their outstanding receivables, which currently stand at around Rs 475 billion, well-informed sources told Business Recorder. Chief Executive Officers (CEOs) of Chinese CPEC IPPs have been writing letters to government functionaries, with copies also shared with the Chinese Ambassador to Pakistan. The Ambassador, sources said, is actively engaging with senior Pakistani officials to finalize the Prime Minister's agenda for bilateral meetings with Chinese leadership. In a recent letter, Wang Dongfang, CEO of Port Qasim Electric Power Company (PQEPC), expressed deep concern over the growing delays in tariff payments by the Central Power Purchasing Agency-Guaranteed (CPPA-G). Debt re-profiling with Chinese IPPs: PD, FD likely to share implementation proposal According to Wang, under the Government of Pakistan's guidance, the 1,320 MW Port Qasim Coal-Fired Power Project—one of the flagship energy ventures under the China-Pakistan Economic Corridor (CPEC)—has consistently provided clean, reliable, and economical electricity to the national grid. 'While we highly appreciate the efforts of the Government of Pakistan and CPPA-G in arranging funds and making tariff payments to IPPs, the total outstanding amount due to PQEPC has reached Rs 81 billion ($286.94 million) as of July 31, 2025, with a delay period of over six months, which could further escalate,' the letter stated. The CEO cautioned that shareholders and sponsors of the project, including those from China and Qatar, have conveyed 'significant discontent' over the payment backlog and have requested urgent measures to reduce the outstanding amount. 'We would like to notify that the current dues entitle PQEPC to suspend plant operations under Section 9.10 of the PPA, without any liability for Liquidated Damages (LDs),' the CEO warned. PQEPC also highlighted that its Energy Purchase Price (EPP) tariff is comparatively more competitive than oil- and RLNG-based power plants. Suspension of operations, the CEO warned, would result in a 'lose-lose' outcome, which both sides must avoid through timely settlement of dues to ensure sustainable generation and prevent triggering defaults under Loan Agreements and the Government of Pakistan's Sovereign Guarantee. Concluding his letter, Wang urged the Finance Minister, Senator Muhammad Aurangzeb and Planning Minster, Ahsan Iqbal to take immediate notice of the 'critical situation' and coordinate with relevant authorities to arrange financial support for CPPA-G so that the outstanding dues could be cleared without further delay. When an official was contacted for comments on the correspondence of Chinese CPEC IPPs on payment of outstanding amounts, he responded that since the government does not have enough fiscal space, the payments will be made on the basis of availability of resources. However, energy payments are being made to them through Escrow Account. The government has earmarked Rs 5 billion per month to be paid to the Chinese CPEC IPPs. Copyright Business Recorder, 2025

‘US-Canada relations'
‘US-Canada relations'

Business Recorder

time2 hours ago

  • Business Recorder

‘US-Canada relations'

This is apropos a letter to the Editor from this writer carried by the newspaper yesterday. It is important to note that until recently, the two countries were bound by one of the strongest economic partnerships in the world. In 2024, total goods trade between them reached USD 761.8 billion, with US exports to Canada worth USD 349.9 billion and imports from Canada at USD 411.9 billion. Agriculture alone accounted for USD 28.4 billion in US exports, including nearly USD 800 million in dairy. Canada sent USD 124 billion worth of energy, machinery, and vehicles to the United States, while the USMCA trade agreement favored US dairy producers by granting 3.6 percent tariff-free access to Canada's USD 15 billion dairy market and removing restrictions that had long frustrated American farmers. This trade was not just numbers—it represented communities, livelihoods, and a shared prosperity that outsiders often described as two halves of one whole. That reality began to unravel early in President Trump's second term when he abruptly imposed tariffs on Canadian goods, starting at 10 percent and then climbing to 35 percent, with threats of even higher duties on dairy. In public speeches, he floated the idea of Canada becoming the 'cherished 51st State' of the United States. The comments were not taken lightly in Ottawa. Prime Minister Mark Carney declared that 'Canada is not for sale and will never be the 51st state.' Former Prime Minister Justin Trudeau described the remarks as humiliating, while Deputy Prime Minister Chrystia Freeland called the US actions 'economic warfare.' Words quickly turned into confrontation, and soon a trade war was underway. Copyright Business Recorder, 2025

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store