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Business Times
10-07-2025
- Business
- Business Times
Chinese property shares surge on unverified reports of meeting to revive sector
[BEIJING] A gauge of Chinese property shares jumped the most in nearly nine months, fuelled by speculation a high-level meeting will be held next week to help revive the struggling sector. A Bloomberg Intelligence index of the nation's real estate stocks surged as much as 11 per cent, with Logan Group rising as much as 85 per cent in Hong Kong, and Sino-Ocean Group Holding climbing by 37 per cent. The rally followed unverified social media reports of a possible high-level meeting that would be reminiscent of the Central Urban Work Conference held in 2015, which sought to propel urban planning and infrastructure. That event was the first of its kind in decades and was attended by President Xi Jinping, former Premier Li Keqiang and all the members of the Politburo's standing committee. The speculation relates to the possible resumption in the development of shanty-town areas, which triggered the purchasing of property stocks, said Shujin Chen, head of China financial and property research at Jefferies Hong Kong. Still, such a resumption is unlikely to happen as the government may not have enough funds to support that endeavour, Chen said. China's property sector is mired in a protracted slump. Over the past four years, a number of major developers have defaulted on their debt as government crackdowns and faltering home-buyer sentiment have weighed on their businesses. Officials have taken a number of steps to try and revive the sector, but these have so far had only modest success. Home sales extended their slump in June, spurring calls for fresh stimulus. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'The central government really needs to do something, especially after the disastrous June sales,' said Hao Hong, chief investment officer at Lotus Asset Management. The market is betting China will dust off its 2015 playbook to support so called shanty-town redevelopment. Potential measures may include the government speeding up the construction of new homes, offering monetary payouts to families and pumping more money into smaller cities to bolster demand. While the benchmark CSI 300 Index didn't immediately respond to the 2015 meeting, the gauge did rise in the two years following its trough in 2016, driven by a number of reforms. The broader market also jumped on Thursday (Jul 10) with the Shanghai Composite Index closing at the highest level since January 2022. The nation's 10-year government bond rose one basis point to 1.66 per cent. Iron ore futures jumped as much as 3.6 per cent in Singapore. Recent efforts to stabilise the stock and property markets haven't panned out, which is why there are wide-ranging 'bets on some new measures for stimulus,' said Zhu Zhenkun, a fund manager at Hainan Shire Asset Management. Efforts to redevelop shanty-towns would 'rejuvenate the market and bring in liquidity,' he said. BLOOMBERG


Time of India
19-05-2025
- Business
- Time of India
Why China has asked its officials to cut spending on alcohol, cigarettes and travel
The directive specifically addressed spending on cigarettes, alcohol and receptions. (AI image) China has instructed government officials nationwide to reduce unnecessary expenditure on travel, meals and office facilities, signalling President Xi Jinping 's commitment to fiscal prudence amidst challenging economic conditions affecting government finances. The regulations reinforce Xi's initiative for officials to reduce expenditure, particularly as declining land sale revenues constrain budgets whilst local administrations face substantial debt obligations. In late 2023, central authorities instructed government officials to embrace austerity measures, strengthening Xi's drive against corruption and ostentatious displays of affluence. Also Read | 'Big ban' actions: How India is shunning Pakistan and its allies like Turkey & Azerbaijan - top 5 measures According to the official Xinhua News Agency on Sunday, the directive from the government and Communist Party leadership specifically addressed spending on cigarettes, alcohol and receptions. The announcement emphasises the importance of practising careful spending and frugality whilst condemning excessive expenditure. Xinhua quoted the directive stating that "waste is shameful and the economy is glorious." On Monday, consumer staples stocks experienced a significant decline within the CSI 300 Index's sub-categories, dropping by 1.7%. Notably, Kweichow Moutai Co. saw its largest decline in six weeks, falling by 2.4%, according to a Bloomberg report. Beijing launched its most comprehensive programme in recent years to tackle local-authority debt concerns in the previous year. This initiative sought to minimise default risks and enable local governments to maintain economic development support. Meanwhile, China recorded a 5.4% economic growth in the first quarter, surpassing projected figures. Officials maintain their optimism about reaching Beijing's growth objective of approximately 5% for the year, although economists caution that UStariffs could impact this progress. Also Read | Why India can be a big winner of Donald Trump 2.0 era if it plays its cards right Concerned about the negative effects of tariffs on economic performance, the government introduced stimulus initiatives earlier this month, encompassing reductions in interest rates and substantial liquidity support. The monetary policy measures were implemented prior to the China-U.S. trade agreement, which was finalised following crucial negotiations in Geneva, representing a notable reduction in the prolonged period of increasing friction. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now


South China Morning Post
21-04-2025
- Business
- South China Morning Post
Chinese stocks rise by most in a week as trade war with US fuels stimulus hopes
Chinese stocks rose by the most in a week on Monday amid expectations of stimulus measures from Beijing to offset the impact of the trade war with the US. Advertisement The CSI 300 Index, a gauge of the nation's biggest companies, advanced 0.2 per cent to 3,778.18 at the trading break, after jumping as much as 0.5 per cent to log the best intraday gain since April 14. The Shanghai Composite Index added 0.3 per cent. Hong Kong's stock market is closed for the Easter holiday and will reopen on Tuesday. The gains were led by tech firms. Artificial intelligence chip designer Cambricon Technologies jumped 5.7 per cent to 707.60 yuan, while high-end processor maker for servers and computers Hygon Information Technology advanced 2.1 per cent to 152.82 yuan. Electric vehicle battery maker Contemporary Amperex Technology rose 3.3 per cent to 232.78 yuan. Limiting gains, Chinese baijiu maker Luzhou Laojiao fell 1.8 per cent to 129.43 yuan, while property developer China Vanke eased 1.9 per cent to 7.17 yuan. Traders are betting on bolder stimulus in the coming months to help mitigate risks amid intensifying trade tensions between China and the US, according to global investment banks. While UBS, Goldman Sachs, Nomura and others have cut their forecasts for China's economy, they expect more measures from Chinese policymakers to underpin the economy. Advertisement 'We expect the government to accelerate bond issuance and the spending of proceeds in the coming months,' Andrew Tilton, an economist with Goldman Sachs, said in a note over the weekend.


South China Morning Post
21-04-2025
- Business
- South China Morning Post
Chinese stocks rise by most in over a week as trade war with US fuels stimulus hopes
Chinese stocks rose by the most in more than a week on Monday amid expectations of stimulus measures from Beijing to offset the impact of the trade war with the US. Advertisement The CSI 300 Index, a gauge of the nation's biggest companies, added 0.4 per cent to 3,787.84 at 9.50am local time, the most since April 11, while the Shanghai Composite Index gained 0.5 per cent. Hong Kong's stock market is closed for the Easter holiday and will reopen on Tuesday. The gains were led by tech firms. Artificial intelligence chip designer Cambricon Technologies jumped 5.9 per cent to 709.01 yuan, while high-end processor maker for servers and computers Hygon Information Technology advanced 2.7 per cent to 153.62 yuan. Electric vehicle battery maker Contemporary Amperex Technology rose 1.9 per cent to 229.66 yuan. Limiting gains, Chinese baijiu maker Luzhou Laojiao fell 1 per cent to 130.40 yuan, while property developer China Vanke eased 1.6 per cent to 7.18 yuan. Traders are betting on bolder stimulus in the coming months to help mitigate risks amid intensifying trade tensions between China and the US, according to global investment banks. While UBS, Goldman Sachs, Nomura and others have cut their forecasts for China's economy, they expect more stimulus measures from Chinese policymakers to underpin the economy. Advertisement 'We expect the government to accelerate bond issuance and the spending of proceeds in the coming months,' Andrew Tilton, an economist with Goldman Sachs, said in a note over the weekend.


South China Morning Post
08-04-2025
- Business
- South China Morning Post
China mounts market intervention as Huijin leads stock purchases amid tariff war
China stepped up its intervention efforts to stabilise its financial markets amid steep losses triggered by an all-out tariff war with the US, calling on at least US$1.3 trillion of funds at state-owned investment vehicles and insurance companies to help stem the worst rout in decades. Advertisement The People's Bank of China (PBOC) on Tuesday said it would provide more liquidity to back purchases by sovereign wealth fund Central Huijin Investment to safeguard local market stability. The National Financial Regulatory Administration said it would allow insurers to use more funds to invest in the stock market, while an array of state-controlled firms stepped up buy-back plans in a move to shore up prices. The CSI 300 Index, which tracks the biggest companies traded in Shanghai and Shenzhen, jumped 1.3 per cent at 2.42pm local time, clawing back some of the 7.1 per cent plunge on Monday. The Hang Seng China Enterprises Index, which crashed 13 per cent on Monday into bear-market territory, rebounded 0.8 per cent in Hong Kong. 'Beijing is sending a clear message [that] they're not going to let this market unravel without a fight,' said Stephen Innes, a managing partner at SPI Asset Management in Bangkok. 'This isn't moral support, it's a full-on monetary airlift.' 02:48 China vows to take 'countermeasures' after Trump's new 50% tariff threat China vows to take 'countermeasures' after Trump's new 50% tariff threat China met US President Donald Trump's 'Liberation Day' 34 per cent tariffs with a matching blow on US goods last week, sending global markets into a seizure on Monday and fanning demand for safe haven assets. The Hang Seng Index, dominated by China's biggest companies, suffered its worst one-day loss since the Asian financial crisis in 1997. Trump has threatened to impose another 50 per cent levy on Chinese goods if Beijing does not remove its tariff, worsening the outlook. Advertisement On Monday, Central Huijin said it bought exchange-traded funds (ETFs) to support the market and would boost its purchases in the future to restore confidence, without disclosing details. The firm, with 7.76 trillion yuan (US$1.1 trillion) of assets, is a unit of sovereign wealth fund China Investment Corp and owns strategic stakes in the nation's biggest lenders.