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Qatar Tribune
11-05-2025
- Business
- Qatar Tribune
Tariff war: China's stock market pays the price
Agencies Beijing China is feeling the heat from the tariff war. The nation's stock market is reeling, and the country's rigid stance risks deepening the economic downturn. Early stimulus efforts offered little relief, and Beijing hesitates to roll out new measures, betting that Washington will yield. On April 28th, China's stock market endured a significant downturn, amplifying concerns about economic instability. The Shanghai Composite Index slid by 0.2 percent, the Shenzhen Component Index dropped 0.62 percent, and the ChiNext index declined 0.65 percent. Over 4,100 stocks recorded losses, with real estate taking a sharp 3 percent hit. Investors remain cautious as Beijing refrains from deploying bold stimulus measures, reinforcing fears of an uncertain economic strategy. This hesitation fuels speculation about China's long-term approach to financial resilience and market recovery. China's fiscal challenges deepened in the first quarter, as government spending grew by 4.2 percent year-on-year while revenue declined by 1.1 percent. This imbalance resulted in a record-high fiscal deficit of 1.26 trillion yuan ($173 billion). To mitigate financial pressures, local governments accelerated borrowing, issuing nearly 1 trillion yuan in special bonds—a staggering 60 percent increase from the previous year. Meanwhile, the People's Bank of China (PBOC) stepped in, boosting loan allocations to state-owned investors to stabilize the stock market. Despite these interventions, economic uncertainty persists. Policy advisers warn that additional measures might be necessary, yet Beijing remains cautious, resisting sweeping stimulus initiatives. As financial constraints tighten, China faces difficult choices about balancing stability and economic resilience in an evolving global landscape. Unlike the US, which has moved toward negotiation by easing its tariff stance, China remains steadfast, refusing to make the first move. Under President Xi Jinping's leadership, Beijing is maintaining a posture of resilience, signalling confidence rather than reacting impulsively. However, this calculated patience carries significant risks. Analysts caution that economic stability could falter without substantial stimulus—potentially up to 2 trillion yuan—to sustain growth above 4 percent. Wall Street forecasts suggest that China might introduce new financial measures worth between 1 and 1.5 trillion yuan in the second half of the year, but even this may not be enough to neutralize the ongoing tariff impact. As global markets watch closely, Beijing must balance its commitment to economic sovereignty with the urgency of sustaining stability. Liu Ting, Chief China Economist at Nomura, warns that announcing stimulus measures prematurely could be perceived as Beijing conceding under pressure—a strategic misstep in the ongoing trade standoff. Such an action might suggest internal instability, eroding confidence in China's economic leadership. Yet, delaying intervention carries its own risks. Economic strains could worsen, prolonging recovery and increasing dependence on later policy interventions. Beijing must carefully balance assertiveness with pragmatism, ensuring that any stimulus aligns with broader financial stability and long-term resilience. As the trade war intensifies, US Treasury Secretary Scott Bessent has confirmed ongoing negotiations with 17 key trade partners, deliberately excluding China. This calculated diplomatic move aims to isolate Beijing, exerting pressure to reconsider its economic stance. Analysts warn that China cannot endure Trump's steep 145% tariff levels indefinitely, pushing Beijing toward inevitable policy shifts to mitigate financial strain. Compounding these challenges, China's foreign policy has taken a confrontational turn. Senior fellow Gordon Chang highlights Beijing's escalating disputes with the Philippines, Taiwan, South Korea, and Australia—an approach that appears counterproductive at a time when it desperately needs allies. This growing diplomatic isolation raises concerns about deeper systemic instability, fuelling speculation that Xi Jinping's leadership may be entering a decisive and potentially precarious phase. China has maintained a firm public stance against tariff concessions, yet emerging reports indicate a subtle rollback on duties for critical US imports. Reductions on semiconductors, aviation equipment, industrial chemicals, and medical devices suggest Beijing is making quiet adjustments to safeguard economic stability. Despite these shifts, the Chinese Communist Party remains publicly silent, unwilling to acknowledge reliance on American trade. Analysts contend that open admission would undermine political credibility, forcing Beijing to balance pragmatic economic decisions with maintaining a facade of resilience in the ongoing trade dispute. China's state media continues to project resilience, reassuring the public that the economy can endure ongoing turbulence. However, behind the scenes, signs of adjustment are emerging. The Wall Street Journal reports that Beijing is weighing the removal of its hefty 125 percent tariffs on select US imports, signalling a quiet yet significant shift in policy to curb industrial disruptions. If China continues this pattern of quiet concessions while maintaining an unyielding public stance, it risks deepening economic instability rather than securing long-term resilience. Xi Jinping's reluctance to openly adjust policy in response to mounting trade pressures may prolong financial uncertainty, erode investor confidence, and limit Beijing's flexibility in global negotiations. The CCP's emphasis on political strength over economic pragmatism could lead to stagnation, forcing heavier reliance on state-controlled interventions. Without a strategic recalibration, China may find itself in an increasingly precarious position—isolated diplomatically, strained financially, and vulnerable to long-term economic decline. As global markets evolve and trade alliances shift, Beijing's approach may determine whether China stabilizes or continues on a downward trajectory.
South China Morning Post
08-04-2025
- Business
- South China Morning Post
China threatens US with ‘countermeasures' as it rushes to stabilise markets
China has vowed to take 'countermeasures' against any move by the United States to further raise tariffs and pledged to take firm action to stabilise the markets, as officials rushed to contain the damage from an escalating trade war. Advertisement China's Ministry of Commerce said on Tuesday that China 'firmly opposes' any moves to increase tariffs by the US and vowed to 'resolutely take countermeasures' if it does so, after US President Donald Trump threatened to raise duties on Chinese imports by a further 50 per cent in a social media post overnight. 'The US threat to escalate tariffs is doubling down on its mistakes, once again exposing its nature of coercion. China firmly rejects this. If the US persists in its course, China will resolutely respond with countermeasures to the end,' said the Ministry of Commerce, according to state-owned Xinhua News Agency. After plunging on Monday, Chinese markets picked up slightly on Tuesday, with Shanghai's CSI 300 index opening up 0.24 per cent while Shenzhen's startup stock index, ChiNext, gained 1.68 per cent. The benchmark Shanghai composite index was down 0.07 per cent. In an online statement, the People's Bank of China said it would 'provide relending support if necessary to resolutely defend the stability of the capital market'. Advertisement Central Huijin, a subsidiary of the sovereign wealth fund China Investment Corp, already intervened in the markets on Monday afternoon. On Tuesday, it pledged to continue to buy more exchange-traded funds (ETFs) in a bid to stabilise prices.
Associated Press
31-03-2025
- Business
- Associated Press
Huatai Securities Reports Record 2024 Earnings and Advancement in Internationalization
HONG KONG SAR - Media OutReach Newswire - 31 March 2025 - Huatai Securities Co., Ltd. (the 'Company"; stock codes: HTSC.L), a leading technology-driven comprehensive securities company in China, released its consolidated financial results for the year ended December 31, 2024, reporting record revenue and profit, alongside substantial progress in its internationalization strategy. Annual Highlights： In 2024, the Company continued to execute on strategic priorities, contributing to net revenues of RMB 54.29 billion, net earnings of RMB 15.35 billion, and diluted EPS of RMB 1.62, achieving the highest results for each. The Company announced a final payout of RMB 5.2 per 10 shares (including tax), reinforcing its commitment to shareholder value. The investment banking business led the Mainland market, ranking first in STAR Market and ChiNext IPOs, and first in M&A activities. The Company expanded its presence in Singapore, Japan, Vietnam, leveraging operations across Mainland China, Hong Kong, the US, the UK, and Singapore. The Company drove growth across its comprehensive financial services, including investment banking, wealth management, and institutional services, through technology-driven initiatives. The Company made significant progress in the following areas: Investment Banking Excellence The preeminent global investment banking business leveraged industry insights and deep expertise to help clients seize new opportunities, unlocking growth and driving transformation. Ranked first in IPO underwriting on the STAR Market and ChiNext, Huatai Securities achieved a total IPO underwriting volume of RMB 8.5 billion, ranking second in the A-share market. The Company maintained a leading position in M&A advisory, particularly in restructuring project reviews. Additionally, it secured second place in equity underwriting with RMB 54.9 billion and achieved third place in bond underwriting, with a total volume of RMB 1,296 billion. In 2024, the Company ranked third in the total number of Hong Kong IPOs across the market and third among Chinese securities firms in terms of funds raised. Huatai Securities solidified its leading position in China's capital markets by supporting innovation-driven enterprises. Since 2012, the Company has been a critical catalyst for technological innovation, backing over 270 technology companies with a collectively market capitalization of RMB 9.47 trillion. In 2024, this commitment continued with support for over 10 'Little Giants' and specialized medium-sized enterprises endorsed by China's Ministry of Industry and Information Technology. Global Reach Accelerates Huatai Securities expanded its international footprint in 2024, demonstrating resilience in navigating volatile overseas markets. Huatai Financial Holdings (Hong Kong) became a lead underwriter in Tokyo's PRO-BOND market, while Huatai Securities (USA) gained Nasdaq underwriting membership. Additionally, a subsidiary of Huatai International, operating as a Chinese securities firm, successfully obtained a securities trading license in Vietnam. The Company's Global Trading Platform (GTP) now connects Hong Kong, the U.S., the U.K., and Singapore 24/7, enhancing cross-border capabilities. Research output surged, with 587 overseas reports (up 96% year-on-year) covering U.S., European, Japanese, and Southeast Asian markets, and stock coverage increased by 65%. Advancing Through Technology To meet the evolving demands of institutional clients, Huatai Securities continued upgrading core trading infrastructure such as FICC HEAD platform and CAMS (Credit Analysis Management System). The tech-powered transformation enabled the Company to lead in market-making in the STAR Market with 126 stocks and fund liquidity services with 589 funds, while dual-counter RMB-HKD trading achieved full coverage and increased market share. The Company was awarded '2024 Top Market Maker – RMB Counter' by HKEX. On the retail front, 'ZhangLe Fortune Path' app, the Company's mobile wealth management platform, is deepening AI integration to enhance client services, delivering sophisticated ETF tools for product selection and trading strategies, thereby boosting client and asset growth. Huatai Securities' fund distribution ranked second among securities firms, with AUM of equity fund reaching RMB 120.2 billion. The Huatai-PineBridge CSI 300 ETF approached RMB 360 billion, leading non-money-market ETFs in Shanghai and Shenzhen. Sustainability and Governance Huatai Securities' MSCI ESG rating rose to AAA in 2024, the highest among global investment banks, up from AA, marking two years of steady progress. Through its Huatai Foundation, rated 5A in Jiangsu's social organization assessment, the Company advanced rural revitalization, education, and eco-initiatives such as 'One Yangtze River', promoting Other Effective Area-Based Conservation Measures (OECM) in China, which were presented at COP16. Looking Ahead Huatai Securities will continue its strategic focus on leveraging technology to enhance its wealth management and institutional services. By integrating resources across the business chain, the Company will further deepen its internationalization strategy, aiming to become one of the leading global investment banks providing top-tier professional financial services. Hashtag: #Huatai The issuer is solely responsible for the content of this announcement. About Huatai Securities Incorporated in April 1991, Huatai Securities is a leading technology-driven securities group in China, with a highly collaborative business model, a cutting-edge digital platform and an extensive and engaging customer base. It provides comprehensive financial services to individual and institutional clients, including wealth management, investment banking, sales and trading, investment management, among others, with a substantial international presence.
Zawya
31-03-2025
- Business
- Zawya
Huatai Securities Reports Record 2024 Earnings and Advancement in Internationalization
HONG KONG SAR - Media OutReach Newswire - 31 March 2025 - Huatai Securities Co., Ltd. (the "Company"; stock codes: HTSC.L), a leading technology-driven comprehensive securities company in China, released its consolidated financial results for the year ended December 31, 2024, reporting record revenue and profit, alongside substantial progress in its internationalization strategy. Annual Highlights ： In 2024, the Company continued to execute on strategic priorities, contributing to net revenues of RMB 54.29 billion, net earnings of RMB 15.35 billion, and diluted EPS of RMB 1.62, achieving the highest results for each. The Company announced a final payout of RMB 5.2 per 10 shares (including tax), reinforcing its commitment to shareholder value. The investment banking business led the Mainland market, ranking first in STAR Market and ChiNext IPOs, and first in M&A activities. The Company expanded its presence in Singapore, Japan, Vietnam, leveraging operations across Mainland China, Hong Kong, the US, the UK, and Singapore. The Company drove growth across its comprehensive financial services, including investment banking, wealth management, and institutional services, through technology-driven initiatives. The Company made significant progress in the following areas: Investment Banking Excellence The preeminent global investment banking business leveraged industry insights and deep expertise to help clients seize new opportunities, unlocking growth and driving transformation. Ranked first in IPO underwriting on the STAR Market and ChiNext, Huatai Securities achieved a total IPO underwriting volume of RMB 8.5 billion, ranking second in the A-share market. The Company maintained a leading position in M&A advisory, particularly in restructuring project reviews. Additionally, it secured second place in equity underwriting with RMB 54.9 billion and achieved third place in bond underwriting, with a total volume of RMB 1,296 billion. In 2024, the Company ranked third in the total number of Hong Kong IPOs across the market and third among Chinese securities firms in terms of funds raised. Huatai Securities solidified its leading position in China's capital markets by supporting innovation-driven enterprises. Since 2012, the Company has been a critical catalyst for technological innovation, backing over 270 technology companies with a collectively market capitalization of RMB 9.47 trillion. In 2024, this commitment continued with support for over 10 "Little Giants" and specialized medium-sized enterprises endorsed by China's Ministry of Industry and Information Technology. Global Reach Accelerates Huatai Securities expanded its international footprint in 2024, demonstrating resilience in navigating volatile overseas markets. Huatai Financial Holdings (Hong Kong) became a lead underwriter in Tokyo's PRO-BOND market, while Huatai Securities (USA) gained Nasdaq underwriting membership. Additionally, a subsidiary of Huatai International, operating as a Chinese securities firm, successfully obtained a securities trading license in Vietnam. The Company's Global Trading Platform (GTP) now connects Hong Kong, the U.S., the U.K., and Singapore 24/7, enhancing cross-border capabilities. Research output surged, with 587 overseas reports (up 96% year-on-year) covering U.S., European, Japanese, and Southeast Asian markets, and stock coverage increased by 65%. Advancing Through Technology To meet the evolving demands of institutional clients, Huatai Securities continued upgrading core trading infrastructure such as FICC HEAD platform and CAMS (Credit Analysis Management System). The tech-powered transformation enabled the Company to lead in market-making in the STAR Market with 126 stocks and fund liquidity services with 589 funds, while dual-counter RMB-HKD trading achieved full coverage and increased market share. The Company was awarded "2024 Top Market Maker – RMB Counter" by HKEX. On the retail front, "ZhangLe Fortune Path" app, the Company's mobile wealth management platform, is deepening AI integration to enhance client services, delivering sophisticated ETF tools for product selection and trading strategies, thereby boosting client and asset growth. Huatai Securities' fund distribution ranked second among securities firms, with AUM of equity fund reaching RMB 120.2 billion. The Huatai-PineBridge CSI 300 ETF approached RMB 360 billion, leading non-money-market ETFs in Shanghai and Shenzhen. Sustainability and Governance Huatai Securities' MSCI ESG rating rose to AAA in 2024, the highest among global investment banks, up from AA, marking two years of steady progress. Through its Huatai Foundation, rated 5A in Jiangsu's social organization assessment, the Company advanced rural revitalization, education, and eco-initiatives such as "One Yangtze River", promoting Other Effective Area-Based Conservation Measures (OECM) in China, which were presented at COP16. Looking Ahead Huatai Securities will continue its strategic focus on leveraging technology to enhance its wealth management and institutional services. By integrating resources across the business chain, the Company will further deepen its internationalization strategy, aiming to become one of the leading global investment banks providing top-tier professional financial services. Hashtag: #Huatai The issuer is solely responsible for the content of this announcement. About Huatai Securities Incorporated in April 1991, Huatai Securities is a leading technology-driven securities group in China, with a highly collaborative business model, a cutting-edge digital platform and an extensive and engaging customer base. It provides comprehensive financial services to individual and institutional clients, including wealth management, investment banking, sales and trading, investment management, among others, with a substantial international presence. Huatai Securities
