Latest news with #CaixinManufacturingPurchasingManagers'Index
Forbes
5 days ago
- Business
- Forbes
China Market Update: Hong Kong's Hopes Hinge On Trump-Xi Call & Policy Meeting Stimulus
CLN Asian equities delivered mixed performance overnight on hopes that a phone call between President Trump and President Xi would take place this week. Hong Kong outperformed, buoyed by a stronger renminbi (RMB) versus the US dollar, while South Korea was closed for the presidential election and Thailand was closed for the Queen's birthday. The Organization for Economic Cooperation and Development (OECD) emphasized that economic cooperation is essential for development, lowering its 2025 global GDP growth forecast to 2.9% from 3.2%. The OECD also reduced its US growth target to 1.6% from 2.2%, citing the ongoing US-induced trade war as a primary factor. Mainland China's economic data appeared to confirm the negative impact of the trade war. The May Caixin Manufacturing Purchasing Managers' Index (PMI) came in at 48.3, down from April's 50.4 and below expectations of 50.7. Caixin's private survey, which focuses on smaller companies, may have underperformed the PMI released by the National Bureau of Statistics (NBS) due to the higher export exposure of the firms included in the survey. Investors may view the weak reading as a catalyst for policymakers to introduce strong stimulus measures at the upcoming Lujiazui Forum, which begins on June 18th. Hong Kong had a strong session, with nearly four advancing stocks for every declining stock. However, trading volumes were only at 100% of the one-year average, and stronger volumes would have been preferred. Banks, internet stocks, and auto companies led gains, while underperformers were limited. Appliance giant Midea Group fell -1.82% in Hong Kong and -3.82% in Mainland China after the Chairman commented that he was not concerned about Xiaomi entering the home appliance industry, but his remark that Midea 'had no moat' may have unsettled investors. The auto and electric vehicle (EV) sector benefited from robust May sales figures. Li Auto rose +5.82% following its first-quarter results and strong May sales. Xiaomi's CEO announced that the company will reach profitability later this year and that the new YU7's price will be revealed soon. After the close, the Ministry of Commerce (MoC) and several departments announced new measures to promote EV and hybrid auto sales in rural areas. Mainland China equities also posted gains, though enthusiasm lagged behind Hong Kong. Financials led the advance, as banks, insurance, and brokerages all performed well. National Team exchange-traded fund (ETF) volumes were below average. Looking ahead, markets are watching to see whether a Trump–Xi phone conversation can pave the way for a summit between the two leaders. New Content Read our latest article: New Drivers For China Healthcare: AI Med-Tech Innovation, Cancer Treatment, & Favorable Balance of Trade Please click here to read Chart1 Chart2 Chart3 Chart4 Chart5 Chart6
See - Sada Elbalad
30-04-2025
- Business
- See - Sada Elbalad
Trump's Tariffs Push China's Factory Activity to Worst Contraction since Late 2023
Taarek Refaat China's factory activity recorded its worst contraction since December 2023, revealing the damage the trade war with the United States has inflicted on the world's second-largest economy. The National Bureau of Statistics said Wednesday that the official Purchasing Managers' Index (PMI) for the manufacturing sector fell to 49.0 in March, down from 50.5 in March. This was below the median forecast of 49.7, according to economists. A reading below 50.0 indicates a contraction. The non-manufacturing PMI, which measures activity in the construction and services sectors, fell to 50.4 from 50.8 last month. This was below expectations of 50.6. China's CSI 300 index of mainland-listed shares saw little change. The PMI readings provide the latest official view of the state of the Chinese economy after the Trump administration imposed a 145% tariff on Chinese goods, a figure expected to hurt a sector that contributed to about a third of the economy's growth last year. Zhao Qinghe, a senior statistician at the National Bureau of Statistics, noted that the decline was due to a high base the previous month and "rapid changes in the external environment." In a statement accompanying the release of the figures, Zhao reiterated the government's position that trade wars are zero-sum, pointing to a slowdown in industrial activity in major economies including the United States, the United Kingdom, and Japan. In an early sign of trouble for Chinese exporters, cargo shipments collapsed, according to one estimate, by as much as 60%. Economists at banks including UBS Group and Goldman Sachs have cut their forecasts for China's 2025 growth to around 4% or less in recent weeks. The Caixin Manufacturing Purchasing Managers' Index for April came in at 50.4, higher than the forecast of 49.7. These figures indicate growth compared to the previous month, albeit at a slower pace. This particular indicator often reflects the activity of smaller, more export-oriented companies. "The US tariff increases have weighed on external demand, with new export orders falling at the fastest pace since July 2023, leading to only a marginal increase in total new orders in April," said Wang Zhe, chief economist at Caixin Insight Group. To help ease the pressure on exporters, Beijing this week announced plans to help struggling companies access loans and boost domestic consumption, but it stopped short of announcing bolder economic stimulus. Instead, officials are focusing on implementing the stimulus package passed in early March. Beijing also appears in no hurry to negotiate with Washington. Foreign Minister Wang Yi warned countries against succumbing to US tariff threats, saying that appeasement would only encourage the "bully." read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Egypt confirms denial of airspace access to US B-52 bombers News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia Lifestyle Pistachio and Raspberry Cheesecake Domes Recipe News Australia Fines Telegram $600,000 Over Terrorism, Child Abuse Content Arts & Culture Nicole Kidman and Keith Urban's $4.7M LA Home Burglarized Videos & Features Bouchra Dahlab Crowned Miss Arab World 2025 .. Reem Ganzoury Wins Miss Arab Africa Title (VIDEO) Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple
