HK stocks extend gains, maintain highest level since November '21
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South China Morning Post
an hour ago
- South China Morning Post
Biotech successes helping Chinese intellectual property go global
As Greater China markets charge into the third quarter with the wind at their backs, there is increasing evidence that 2025 is the year Chinese intellectual property goes global. A month ago, I wrote about the peculiar appeal of the Labubu doll , which seemingly leapt out of nowhere to become a global pop culture phenomenon. This was the latest example of a successful Chinese entertainment IP – a unique asset with intangible social value – taking off. Meanwhile, China is also making huge progress in humanoid robotics , an advanced technology segment where the country is dominating. This burgeoning industry is ripe for value creation as robotics developers not only own the production and hardware assets, but also the underlying artificial intelligence IP powering their capabilities. The modern global economy has IP at its core. A 2023 analysis from the UCLA Anderson School of Business calculated that intangible assets comprised more than 90 per cent of the total assets on the balance sheets of S&P 500 companies. The market increasingly sees IP as the catalyst for further growth in Chinese stock valuations, with the latest prominent example being China's booming biotechnology sector. While Hong Kong's Hang Seng Index finally turned bullish this year and is up more than 20 per cent in the year to date, the Hang Seng Biotech Index has nearly doubled.
RTHK
13 hours ago
- RTHK
HK and mainland markets rally after bad week
HK and mainland markets rally after bad week The Hang Seng Index ended trading on Monday up 225 points, or 0.92 percent, at 24,733. File photo: RTHK Mainland and Hong Kong stocks gained on Monday, recovering from last week's sharp declines, as defence and tech stocks led gains. The benchmark Hang Seng Index ended trading for the day up 225 points, or 0.92 percent, at 24,733. The Hang Seng China Enterprises Index climbed 1.01 percent to 8,893 while the Hang Seng Tech Index jumped 1.55 percent to 5,481. Up north, the benchmark Shanghai Composite Index closed up 0.66 percent at 3,583 while the Shenzhen Component Index closed 0.46 percent higher at 11,041. The combined turnover of these two indexes stood at about 1.5 trillion yuan, down from 1.6 trillion yuan on Friday. Sectors such as military equipment and gold led gains while stocks related to photovoltaic equipment suffered major losses. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 0.5 percent to close at 2,334 The rebound on Monday came after markets last week booked their steepest losses since April. The bullish trend for Chinese equities has started to show signs of slowing as the much anticipated Politburo meeting and tariff negotiations with the United States both failed to deliver positive surprises. "Market sentiment is becoming more volatile as positive catalysts are losing momentum," Citic Securities said in a note, adding that investors might shift focus to defensive sectors for shelter or industries with clear growth trajectories. The tech sector jumped 1.6 percent and AI-related shares added 1.7 percent, leading markets higher. Domestic chip stocks continued to rally on Monday after Beijing raised concerns over potential security risks in Nvidia's H20 chip. Looking ahead, markets are awaiting new developments on the trade truce between China and the United States that expires on August 12. US Treasury Secretary Scott Bessent said Washington has the makings of a deal and was "optimistic" about the path forward. "Given rising uncertainties in the foreign market, especially in the US where Trump's intervention in economic reporting undermines the efficacy of policies, both on- and off-shore Chinese markets will likely be under pressure in the near term," Hong Hao, chief investment officer at Lotus Asset Management, said in a note. (Reuters/Xinhua)
HKFP
14 hours ago
- HKFP
Hong Kong may see surplus in current financial year, defying previous forecasts of continuing deficit
Hong Kong may see a surplus in the current financial year, the city's finance chief has said, defying previous forecasts of recording a deficit for the fourth straight year. Hong Kong has seen improved performance in retail sales and the property market, recording 3.1 per cent year-on-year growth in the second quarter, Financial Secretary Paul Chan said on a Commercial Radio programme on Sunday. 'We originally expected deficits of a few billion in our operating account for the 2025-26 fiscal year, but if this momentum continues, there is a chance our operating account may record a surplus,' Chan said in Cantonese. Hong Kong saw a deficit of HK$87.2 billion for the 2024-25 fiscal year, the third consecutive shortfall. During his budget address in February, Chan attributed the deficit to the poor property market taking a toll on government revenue from land sales and stamp duty. Due to the deficit, the government said that it aimed to cut spending by 7 per cent over the next three years. At the time, the finance minister said the city forecast a continuing deficit of HK$67 billion in the coming 2025-26 financial year. As part of spending cuts, the government axed a HK$2,500 annual subsidy for students and reduced the public transport subsidy scheme, which offers a monthly rebate for commuters. Chan said on Sunday that while the government had upcoming infrastructure expenses, including those for the Northern Metropolis development plan near the border with mainland China, the city's finances were 'very stable and healthy.' Last week, the government said in a statement that Hong Kong's financial markets' performance had steadily improved this year. The Hang Seng Index recorded an increase of over 25 per cent so far this year, according to the statement. The government has also 'achieved remarkable results' in attracting talent and investment, it said. Meanwhile, Chan said on Wednesday that more mainland Chinese companies were expected to list on Hong Kong's stock exchange amid geopolitical tensions, which have made it harder for them to list in the US. Mainland Chinese companies 'would naturally want to come to Hong Kong for listing, because… they can access both international and Mainland capital,' the finance chief said.
