China equities resilient amid ‘end of US exceptionalism': HSBC Asset Management
Chinese equities are relatively resilient thanks to 'the end of US exceptionalism', signs of stabilised corporate earnings and room for policy support, HSBC Asset Management said on Tuesday.
'The growth part of our investment strategy is a story of the end of US exceptionalism, and this opens up an opportunity for other parts of the global stock markets to continue their process of outperforming in 2025,' said Joseph Little, the firm's global chief strategist.
'For example, the growth in the Chinese stock market's profits would be on a similar level to what we see in the US,' he said. 'But of course, it is available for investors at a much cheaper valuation, a much cheaper entry price.'
The asset-management arm of
Hong Kong's largest lender said investors were no longer relying heavily on US assets for safety, balance and resilience, adding that they were looking to other parts of the world, especially Europe and Asia.
'Despite ongoing uncertainties stemming from … US tariffs, Chinese equities have shown strong resilience over the past two months,' said Caroline Yu Maurer, HSBC Asset Management's head of China and core Asia equities.
Hong Kong's Hang Seng Index has risen 20 per cent so far this year, while the CSI 300 Index, which tracks mainland China's largest onshore-listed companies, was little changed.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
2 hours ago
- South China Morning Post
China pushes SCO Development Bank as Russia pivots to Asia: analysts
As the United States scales back foreign aid and increases financial sanctions through long-arm jurisdiction, analysts said Beijing is strengthening its influence in international development finance and regional economic cooperation. Driven by rising geopolitical tensions and Russia's strategic pivot to the East, they said the Shanghai Cooperation Organisation (SCO) Development Bank, which has been stalled for over a decade, was now closer than ever to becoming a reality. Momentum is building ahead of an autumn summit in Tianjin, a northern port city 100 kilometres east of Beijing, where SCO leaders – including those from Russia and five Central Asian nations – are set to convene. In early June, China's Vice-Premier Ding Xuexiang highlighted the bank proposal, along with related initiatives for local currency settlement and digital finance, during a meeting with SCO finance ministers and central bank chiefs in Beijing. First proposed by China in 2010 to promote regional trade and the use of local currencies, the bank has frequently surfaced in high-level discussions – but progress has remained elusive.
South China Morning Post
3 hours ago
- South China Morning Post
China and Central Asian leaders cap summit with friendship pact and aid pledge
China wrapped up its latest engagement effort in Central Asia on Tuesday with a 1.5 billion (US$209 million) yuan pledge towards livelihood and development projects in the region. Advertisement The six participating countries in the second China-Central Asia Summit also signed a landmark permanent friendship pact. 'China is willing to provide 1.5 billion yuan in grant assistance to Central Asian countries this year to support livelihood and development projects of common concern to each country,' Chinese President Xi Jinping said in his keynote address to the summit in Kazakhstan's capital Astana. 'Additionally, China will offer 3,000 training opportunities to Central Asian nations over the next two years.' Xi hailed the signing of the Treaty of Permanent Good-Neighbourliness and Friendly Cooperation as a milestone in relations among the six nations, saying it represented 'an innovative endeavour in China's neighbourhood diplomacy – a contribution for our time that benefits generations to come'. Advertisement China has similar treaties with Russia and Pakistan.
South China Morning Post
3 hours ago
- South China Morning Post
DeepSeek rival MiniMax says its first AI reasoning model halves compute of R1
Shanghai-based artificial intelligence (AI) start-up MiniMax has launched an open-source reasoning model that it said requires just half the computing resources of rival DeepSeek 's models for some tasks. Advertisement On Tuesday, the company announced the release of MiniMax-M1, its first reasoning model, on its official WeChat account. M1 consumes less than half the computing power of DeepSeek-R1 for reasoning tasks with a generation length of 64,000 tokens or fewer, according to a technical paper released alongside the product. 'Compared with DeepSeek … this substantial reduction in computational cost makes M1 significantly more efficient during both inference and large-scale [model] training,' MiniMax researchers wrote in the report. The new model comes as Chinese tech giants and start-ups race to develop advanced reasoning models – designed to 'think' through a problem before responding – in a bid to catch up with DeepSeek, whose affordable R1 model drew global attention earlier this year. MiniMax referenced DeepSeek 24 times in its technical paper, underscoring the company's ambition to challenge its Hangzhou-based rival, which has become the darling of China's AI industry. MiniMax cited third-party benchmarks showing that M1 matches the performance of leading global models from Google Microsoft -backed OpenAI and -backed Anthropic in maths, coding and domain knowledge. Advertisement M1 is built on the 456-billion-parameter MiniMax-Text-01 foundational model and employs a hybrid mixture-of-experts architecture – an approach to designing AI models to reduce compute, which is also used by DeepSeek. M1 also uses Lightning Attention, a technique that speeds up training, reduces memory usage and enables the model to handle longer texts.
