Chinese Stocks Close Higher Driven By Gold And e-Commerce Sectors
(220704) -- BEIJING, July 4, 2022 (Xinhua) -- A staff member walks past the Shenzhen Stock Exchange in Shenzhen, south China's Guangdong Province, Sept. 21, 2020. (Xinhua/Mao Siqian)
Chinese stocks closed higher on Monday, with the benchmark Shanghai Composite Index up 0.45 percent to 3,291.43 points.
The Shenzhen Component Index closed 1.27 percent higher at 9,905.53 points.
The combined turnover of these two indices stood at about 1.04 trillion yuan (about 144.53 billion U.S. dollars), up from 914.7 billion yuan on the previous trading day.
Shares related to the gold and e-commerce sectors were among the biggest winners, while those related to banking and Chinese liquor emerged as the biggest losers.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 1.59 percent to close at 1,944.32 points. Related
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The Star
14 minutes ago
- The Star
Comment: What can Cambodia offer the US ahead of third round of tariff negotiations?
PHNOM PENH: As Cambodia and the US prepare for a potential third round of negotiations regarding the heavy tariffs imposed on Cambodian goods, the stakes could not be higher for the Cambodian economy. The current situation — where the US maintains a 49% tariff on a broad range of Cambodian exports — is unsustainable for a developing country that relies heavily on international trade. This trade barrier threatens not only Cambodia's economic stability but also its attractiveness as a regional investment destination. The second round of negotiations ended without a concrete agreement, leaving both sides with open expectations and diplomatic uncertainty. As the third round approaches, Cambodia must reconsider its approach and think strategically about what it can offer the US — both as a gesture of goodwill and as a calculated move to regain economic advantage. The US remains one of Cambodia's most important export markets. In 2023 alone, the Kingdom exported over $8 billion worth of goods to the US, primarily garments, footwear and travel goods. With the new tariffs, many of these goods are now subject to nearly 49% import tax — crippling their competitiveness in the US market. Even more concerning is the broader implication: Chinese investors and manufacturers, who had shifted to Cambodia in previous years to avoid US-China trade disputes, are now beginning to pull out. If Chinese businesspeople, who have been instrumental in building Cambodia's manufacturing base, decide to relocate to Vietnam, Indonesia or Bangladesh, the long-term damage to Cambodia's industrial ecosystem could be devastating. It is clear that without a breakthrough in negotiations, Cambodia risks economic isolation and a significant loss in employment opportunities, foreign direct investment, and GDP growth. This is why Cambodia must consider making the first concession. In diplomacy, small symbolic actions can unlock large strategic benefits. Cambodia must recognise that the US is not only negotiating as an economic power but also as a political actor with global norms and values. The deterioration of Cambodia-US relations began in 2017, when the Cambodian government accused the US of supporting a 'colour revolution' and took a number of aggressive actions against the opposition, particularly the Cambodia National Rescue Party (CNRP). Since then, several high-profile political activists with alleged ties to the United States have been arrested or exiled. To move forward, Cambodia could consider making a political goodwill gesture before the third round of talks. For example, the early or conditional release of certain political prisoners — particularly those with clear connections to US institutions or civil society organisations — could demonstrate a spirit of compromise. This would not only help repair trust but also provide the US with a tangible outcome to present to its own domestic stakeholders, especially members of Congress who remain critical of Cambodia's human rights record. The US has long maintained a dual-track policy toward Cambodia: one based on economic engagement and another focused on human rights and democratic governance. Unlike China, the US does not provide aid or investment without conditions. The US seeks reciprocity in political values — freedom of expression, multiparty democracy and rule of law. Thus, even as Cambodia hopes for economic relief, it must understand that US negotiators are likely to push for more than trade concessions. They may seek reassurances on political reform, media freedom, and the reopening of democratic space. Pre-emptively addressing these concerns could help create a more favourable environment for the third round of discussions. It is important for Cambodian leaders to see beyond short-term national pride and recognise the broader geostrategic context. While China remains Cambodia's closest political and economic ally, China itself is now looking for ways to stabilise its relationship with the US, especially in the trade sector. China's priority is to show that it can be a strong and credible actor on the global stage. In this context, Cambodia must also demonstrate that it is a 'qualified friend' — not one that simply asks for help, but one that brings value to the relationship. China wants to support strong, stable and strategically useful allies. If Cambodia appears diplomatically isolated or economically weak, even China's support may become more conditional. The best way for Cambodia to prove its strength is to show that it can negotiate effectively with global powers like the US while maintaining its own dignity and national interests. Cambodia's leadership has repeatedly emphasised national sovereignty and pride, which are valid principles. But diplomacy requires pragmatism. By taking a calculated step toward political openness, Cambodia stands to gain not only economic relief but also renewed credibility on the world stage. This is not about surrendering national dignity — it is about safeguarding Cambodia's economic future. The third round of negotiations offers a narrow but real window of opportunity. Cambodia should walk into that room not as a passive petitioner, but as a proactive and responsible partner ready to contribute to a shared solution. The US is not asking Cambodia to become its ally against China. What it wants is clear: respect for democratic norms, transparent governance and political accountability. Offering the first concession — on Cambodia's own terms — could redefine the trajectory of bilateral relations for the better. All in all, Cambodia is at a crossroads. The current trade impasse with the US must be resolved not through confrontation, but through strategic compromise. A well-thought-out gesture — particularly one rooted in political goodwill — could unlock immense economic and diplomatic benefits. Now is the time for courage, not defiance. By showing a willingness to engage constructively, Cambodia can not only win favour in Washington but also retain the respect and support of its friend in Beijing. This delicate balancing act requires wisdom, timing and a clear understanding of what Cambodia must give in order to get what it truly needs. - The Phnom Penh Post/ANN *** Seun Sam is a policy analyst at the Royal Academy of Cambodia. The views and opinions expressed are his own.
The Star
14 minutes ago
- The Star
Starbucks to lower prices in China as competition heats up
BEIJING: Starbucks China will lower the prices of some of its iced drinks by an average of 5 yuan ($0.70) across the country, the company announced on Monday, as competition intensifies and consumers become more cautious about spending. In a post on its Weixin social media account, the U.S. coffee chain said it would offer more "accessible" prices on dozens of its drinks, including non-coffee drinks and the Frappuccino, from Tuesday. While China is Starbucks' second-largest market after the U.S., the coffee market is highly competitive and consumers have become more cautious about spending because of the slowing economy and concerns about job security. The new approach means some of Starbucks' drinks will be priced as low as 23 yuan, the post said. Domestic rivals such as Luckin Coffee and Cotti have priced their drinks as low as 9.9 or even 8.8 yuan, while deep-pocketed internet companies and Alibaba Group have entered the food delivery market, adding to the competition. With offers and vouchers, Chinese coffee consumers can buy themselves a drink for as little as 2.9 yuan. A person close to Starbucks, said the company was not reducing prices in response to intense price competition, but looking to attract more customers in the afternoon. The individual requested anonymity as they were not in a role that allowed them to comment to the media. "Starbucks likely has a longer-term strategy, which is to focus on the demand for non-coffee items in the afternoon among consumers," the source said. Starbucks had said previously that it would not engage in a price war. However, it has also introduced smaller-sized drinks and issued coupons which have lowered prices for customers. The U.S. giant has also been looking to revive its business in China via selling stakes in the business. - Reuters
The Star
14 minutes ago
- The Star
Asian equities rise ahead of US-China trade talks, FX largely flat
Most emerging Asian equities rose on Monday ahead of the crucial trade talks between the U.S. and China in London later in the day, while regional currencies remained subdued against a steady dollar. Top trade representatives from Washington and Beijing will meet for talks aimed at defusing the high-stakes trade disputes between the world's two largest economies, which have flared up in recent weeks. The second round of meetings comes four days after U.S. President Donald Trump and Chinese leader Xi Jinping spoke by phone, their first direct interaction since Trump's January 20 inauguration. "The U.S. and China will be holding formal talks around hashing out their differences and trying to reach a trade deal has provided some positive sentiment to markets in the region", said Khoon Goh, head of Asia research at ANZ. MSCI's gauge of Asian emerging market equities rose as much as 1% to its highest level since October 2024. Taiwan stocks rose 0.7% and Singapore shares added 0.2%. Chinese stocks gained 0.3%. South Korean shares climbed 1.7%, supported by post-election policy optimism under newly elected President Lee Jae-myung. The benchmark index had gained 4% last week. A positive session on Wall Street on Friday, driven by better-than-expected U.S. jobs data, helped ease concerns over a potential U.S. recession and is lifting investor confidence today, Goh added. Data showed that nonfarm payrolls increased by 139,000 jobs last month fewer, than the 147,000 jobs added in April but exceeding the 130,000 gain forecast in a Reuters poll of economists. Regional currencies were largely flat, with the Singapore dollar rising 0.2% and the Malaysian ringgit falling 0.2%. The dollar slipped 0.1%, retracing part of the 0.5% gain it posted on Friday, as initial enthusiasm over a strong U.S. employment report gave way to caution ahead of key U.S.-China trade talks. Analysts at Nomura expect markets to remain choppy and range-bound through summer amid ongoing tariff uncertainties. "Market attention remains fixated on the expiration of the 90-day pause on tariffs (subject to court rulings)". Markets in Indonesia were closed for a public holiday. HIGHLIGHTS: ** South Korea president calls for measures to respond to rising prices ** BOJ must ensure fiscal considerations don't overtake mandate, deputy governor says - Reuters
