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Business Recorder
2 hours ago
- Business
- Business Recorder
China and HK stocks lower as investors book profits after strong rally
HONG KONG: China and Hong Kong stocks declined on Tuesday as investors locked in profits ahead of the end of the month, after benchmarks hit multi-year highs. China's blue-chip CSI300 Index and the Shanghai Composite Index edged down 0.05% and 0.08%, respectively, by the lunch break. Hong Kong benchmark Hang Seng dropped 0.95%, while Hang Seng Tech lost 1.76%. The retreat comes after the Shanghai Composite peaked to a 3-1/2-year high on Monday. The Hang Seng also hit its highest since November 2021 last week. 'Most likely, people are taking some money off the table before the Hang Seng Index futures that expire tomorrow (to book gains),' said Steven Leung, executive director at broker UOB Kay Hian. China's announced measures to boost birthrate through an annual childcare subsidy of 3,600 yuan (about $500) until age three. That failed to boost market sentiment. Infant formula maker Beingmate jumped 6% in Shenzhen, but China Feihe dipped 0.6% in Hong Kong. Hong Kong-listed Jinxin Fertility was also down 1.2% China stocks pause rally as investors eye Politburo meeting 'As the subsidy is relatively small, we don't think the birth rate will significantly increase in coming years,' Ting Lu, chief China economist at Nomura, said in a note on Monday night. Meanwhile, healthcare and biotech stocks extended their rally, up more than 2% both in Hong Kong and mainland A-shares, to lead gains. Investors are also awaiting the outcome of a new round of trade talks between top U.S. and Chinese economic officials, which began in Stockholm on Monday. The smaller Shenzhen index was down 0.2%, the start-up board ChiNext Composite index was higher by 0.92% and Shanghai's tech-focused STAR50 index was up 0.83%?. Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.69% while Japan's Nikkei index was down 0.87%.
South China Morning Post
4 days ago
- Automotive
- South China Morning Post
Hong Kong stocks snap 5-day gain as investors await latest China-US trade talks
The run-up that drove Hong Kong stocks to the highest level in three and a half years took a pause on Friday before a new bout of trade talks between China and the US over the weekend. The Hang Seng Index fell 0.6 per cent to 25,509.55 as of 10.12am local time, halting a five-day gain. The Hang Seng Tech Index dropped 1.1 per cent. On the mainland, the CSI 300 Index slid 0.4 per cent, and the Shanghai Composite Index retreated 0.2 per cent. Li Auto slid 3.1 per cent to HK$115.10, and peer BYD lost 1.9 per cent to HK$129.40. Alibaba Group Holding shed 1.5 per cent to HK$118.50, while Tencent Holdings sank 0.6 per cent to HK$553.60. Investors need more conviction from the third round of China-US tariff talks to sustain the momentum that carried the Hang Seng Index to an almost 30 per cent gain this year. It is widely expected that the two nations will extend a 90-day tentative deal reached in April. The Hang Seng Index rose by nearly 3 per cent this week as fears faded that the US tariff approach would derail global growth and stoke inflation. The US struck a deal with Japan, imposing a lower-than-expected 15 per cent rate, and is reportedly close to reaching an agreement with the European Union that would not trigger retaliation from the bloc. Biotech firm Nanjing Leads Biolabs surged 120 per cent from its offer price to HK$77 on its first day of trading in Hong Kong.
Independent Singapore
4 days ago
- Business
- Independent Singapore
New Silk Road hedge fund shuts down after weak returns, US investors pullback and founders' decision to 'hang up their boots'
Photo: Freepik/freestockcenter SINGAPORE: New Silk Road Investment Pte is shutting down after years of weak returns and as US investors' enthusiasm for liquid equity investments in Asia waned, cutting the fund's assets from nearly S$2 billion in 2021 to S$615 million by the end of 2024. However, Bloomberg reported that the firm wasn't forced to wind down because of deficits but because both founders, now in their 60s, opted for a slower pace, with no immediate successors ready to take over the business. The firm, one of Singapore's early hedge funds and among the first foreign investors in China's onshore markets, was founded in 2009 by Yik Luen Hoong, a former Deutsche Bank executive, and Raymond Goh, who previously led Asian equities at GIC. While Mr Hoong noted that the firm's traditional source of funding from US institutions had been 'less enthusiastic' about liquid equity investments in Asia in recent years, 'in no small part due to geopolitical reasons,' he added: 'We had just decided to hang up our boots to return the capital to our investors so that they can pursue a more appropriate strategy of the time. It's as simple as two veterans choosing a different path in life.' See also Hedge Funds vs Mutual Funds vs ETFs – Which Should I Invest In? Mr Hoong confirmed the firm's closure in an email to Bloomberg , stating that all capital will be returned to investors. The fund's performance struggled in recent years. Its Asia Landmark Fund and China Fund recorded losses in three of the last five years. In 2022, Asia Landmark Fund dropped by 28% while China Fund fell 19%, alongside the 22% decline in China's CSI 300 Index. 'We are just one of many active value funds in Asia that have not been the favour of the time,' he said, adding that the market had shifted in a way that no longer supports a 'longer-term fundamental investing approach with value bias'. New Silk Road had already started scaling back earlier this year, cutting staff in Shanghai and closing a more recently launched Southeast Asia fund, although the number of roles affected remains unclear. Mr Hoong, who acknowledged that active management in Asia has been 'tough,' also noted that Singapore remains a successful hub for hedge funds. /TISG Read also: Will Cathay Cineplexes soon bid its final farewell amid millions in debt? () => { const trigger = if ('IntersectionObserver' in window && trigger) { const observer = new IntersectionObserver((entries, observer) => { => { if ( { lazyLoader(); // You should define lazyLoader() elsewhere or inline here // Run once } }); }, { rootMargin: '800px', threshold: 0.1 }); } else { // Fallback setTimeout(lazyLoader, 3000); } });
Business Times
4 days ago
- Business
- Business Times
Markets bet Beijing is getting serious about China's overcapacity
[BEIJING] Commodity prices from steel to polysilicon have surged this month as Chinese investors bet Beijing is finally serious about addressing overcapacity across the world's second-largest economy. Prices for nine industrial commodities including coal, steel, polysilicon, a building block for solar panels, alumina and lithium carbonate have climbed by 10 per cent to 68 per cent this month while share prices in steelmakers, solar panel manufacturers and clean energy companies have outpaced the benchmark CSI 300 Index. The moves coincide with Beijing's call on July 1 to tackle 'disorderly price competition,' or overcapacity, and an acknowledgement it intends to deal with a persistent problem fuelling deflation at home and trade barriers abroad. Since then, state media has amplified that message with warnings against involution, a now-popular reference to competition so fierce it becomes self-destructive. 'I think that addressed a big concern for investors, which is the profit margin squeeze on some of the very promising sectors,' said Tai Hui, Asia Pacific chief market strategist at JPMorgan Asset Management. Champions of the old economy including steel and coal and newer industries such as solar panels and electric vehicles are grappling with overcapacity and falling prices, which had previously prompted many warnings but little action. 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 This month, some of the reactions from ministries, regulators and local governments suggest Beijing's signal is being received. Two days after a top-level policy meeting on July 1 called for action, the industry ministry pledged to curb price wars in the solar sector. China's photovoltaic industry index is up about 11 per cent this month. Polysilicon prices are up 68 per cent after local media reported that the two biggest producers were preparing to buy up smaller rivals and consolidate the sector. Last week, a lithium miner in northwest China was temporarily shut for non-compliant mining, leading speculators to bet that more closures could follow. This week, prices for coking coal used to make steel rose to their daily limit for three consecutive sessions after the National Energy Administration ordered inspections at mines to check for excess production. To be sure, Beijing has pushed supply-side reforms before, most recently about a decade ago to cut production in the cement, steel, glass and coal industries. However, the task is more difficult this time due to higher levels of private ownership in many of these industries, misaligned incentives at the local and national levels, and limited options for other sectors to absorb lost jobs. It's unclear how far authorities are determined to go in curbing production and which other sectors they may target. China's leadership is sending a clear and positive signal about their commitment to address overcapacity, but progress is likely to be much slower this time around and it could take a year or two to see improvement in company profits, said Laura Wang, chief China equity strategist for Morgan Stanley based in Hong Kong. 'In the next three to six months, we are relatively conservative in terms of how much actual capacity shutdown you would be able to see,' Wang said. REUTERS
New Straits Times
6 days ago
- Business
- New Straits Times
China, HK stocks power ahead as eased trade tensions fuel rally
SHANGHAI: China stocks rose for a fifth straight session on Wednesday while Hong Kong shares hit near four-year highs, as eased China-US trade tensions added fuel to a rally driven by a trillion-yuan hydropower dam project in Tibet and Beijing's campaign against intense price wars. Both China's blue-chip CSI300 Index and the Shanghai Composite Index climbed as much as 0.9 per cent to eight-month highs, before paring gains to end slightly higher. Hong Kong's benchmark Hang Seng jumped 1.6 per cent to hit its highest level since late 2021. In a sign the rally likely has legs, daily turnover in China stocks was near five-month highs on Wednesday, while margin financing - money borrowed to buy stocks - has hit a level not seen in nearly four months. "External and internal headwinds have subsided faster than expected," Huatai Securities said in a note to clients, adding that "in the latest round of tariff talks with the US, China has strengthened its hand." China's economy benefits from the government's stepped-up campaign against 'involutionary competition' and positive real estate policies, Huatai added. In a sign of reduced tensions, US Treasury Secretary Scott Bessent said on Tuesday that US and Chinese officials will meet in Stockholm next week to discuss an extension of the deadline for negotiating a trade deal. "I think trade is in a very good place with China," Bessent said. Chinese tech stocks, which are sensitive to China-US relations, jumped on Wednesday. China's tech-focused STAR50 Index gained 0.5 per cent, while Hong Kong's Hang Seng Tech Index jumped 2.5 per cent. Sentiment has been buoyed by bets that steelmakers, coal miners and solar energy firms will benefit from Beijing's move to cut industrial capacity and rein in deflation, though some stocks in these sectors corrected on Wednesday following recent price surges. Mood has also been aided by China's massive hydropower dam project that started construction this week.
