Latest news with #ChineseStocks
Free Malaysia Today
18 hours ago
- Business
- Free Malaysia Today
HK-listed Chinese shares near 1-month low, yuan weakens on tariff concerns
The Hang Seng China Enterprises Index declined 0.9% to the lowest since May 6, while Hong Kong's benchmark Hang Seng Index slipped 0.6%. (AP pic) HONG KONG : Chinese stocks listed in Hong Kong slipped to near a one-month low today and the offshore yuan weakened as renewed China-US tariff tensions weighed on sentiment. Tensions between the world's two biggest economies flared again after US President Donald Trump on Friday accused Beijing of violating the consensus reached in May's Geneva talks. Today, China's commerce ministry rebuked Trump, calling his comments 'groundless,' and promising to take 'forceful measures' to safeguard its legitimate rights and interests. The Hang Seng China Enterprises Index, which tracks mainland companies listed in Hong Kong, declined 0.9% to the lowest since May 6, while Hong Kong's benchmark Hang Seng Index slipped 0.6%. The offshore yuan weakened slightly to per dollar, trimming earlier losses during Asian trading hours, while the Hong Kong dollar hovered near the weaker end of its 7.75-7.85 per dollar trading band. Mainland markets are closed for the Dragon Boat Festival and will resume trading tomorrow. The declines today were across the board, with the Hang Seng Tech Index losing 0.7%, property sub index declining 1.4% and healthcare sector sliding nearly 2%. Among the biggest laggards, local property firm New World Development plunged 6.9% to near a two-month low after it deferred coupon payments. Car makers continued the slide amid ongoing price war concerns. Shares of Li Auto and Nio both lost more than 2%, while BYD weakened 1.9%. Trump and Chinese President Xi Jinping will speak soon to iron out trade issues including a dispute over critical minerals, treasury secretary Scott Bessent said over the weekend.
Bloomberg
a day ago
- Business
- Bloomberg
Good Prospects for Chinese Companies to Flourish, HSBC Says
HSBC's Herald van der Linde shares his outlook for Asian and Chinese equities on Bloomberg Television. He says "there is good prospects for these companies to flourish." For the Chinese stock market in particular, he advises looking at banks as well as "companies that will become global leaders in their respective industries," such as EVs and industrial robotics. (Source: Bloomberg)
Bloomberg
a day ago
- Business
- Bloomberg
Chinese Shares Fall in Hong Kong on New Trade Frictions With US
Chinese shares traded in Hong Kong fell on Monday, as heightened US-China trade tensions jolted market sentiment. The Hang Seng China Enterprises Index dropped as much as 2%, after a gauge of Chinese stocks traded in the US fell 2.7% on Friday. The onshore market is closed for holiday on Monday.
Yahoo
3 days ago
- Business
- Yahoo
Down 17% in a week and on a P/E of 10! Should I buy this dirt cheap value stock?
Chinese stocks are normally valued at a discount to their US peers, even if they're in hyper-growth mode. Take PDD Holdings (NASDAQ: PDD), which is a Chinese e-commerce company that trades at the sort of valuation you'd expect to see from a FTSE 100 value stock. The Temu owner grew its revenue and earnings by 59% and 78%, respectively, last year. Yet the stock has tumbled 17% in a week and now trades at a price-to-sales (P/S) ratio of 2.6 and a price-to-earnings (P/E) multiple of just 10.5. At first glance, this looks unjustifiably cheap. So, should I add this value stock to my portfolio? Let's find out. Firstly, it's worth pointing out why US-listed Chinese stocks trade at such a wide discount to American peers. It all boils down to regulatory risk, as China's tech companies can quickly fall foul of regulators and have them breathing down their necks for all sorts of reasons. For example, as well as its international Temu shopping platform, PDD operates Pinduoduo in China. It focuses on value-for-money merchandise and has a strong emphasis on agricultural products, directly connecting farmers with consumers. It has had great success taking market share from larger e-commerce rivals like Alibaba in recent years. However, President Xi Jinping wants more 'high-quality development' in the Chinese economy, with fewer counterfeit goods. In response to these concerns, Pinduoduo has initiated efforts to enhance product quality. Last year, PDD said it was 'prepared to accept short-term sacrifices' to 'vigorously support high-quality merchants'. I read this as a clear signal that the firm's profits were going to come down significantly. To be fair, management was honest about this, saying: 'In the long run, the decline in our profitability is inevitable'. Essentially, Chinese companies have to align themselves with what the government wants. And this often doesn't involve the maximisation of shareholder profits, which puts off a lot of investors. Hence why most Chinese stocks trade at cheap multiples. And geopolitical risk associated with US-China tensions only adds to the downwards pressure. But it's not all domestic issues, including weak Chinese consumer spending, for PDD. Temu's explosive growth has relied on shipping low-cost goods to US consumers directly from Chinese merchants. However, President Trump has abolished the de minimis tax exemption that encouraged this, as well as slapping sky-high tariffs on Chinese imports. In Q1, PDD's revenue grew just 10% to $13.2bn, a significant deceleration. Meanwhile, profits fell nearly 50% to $2bn! The risk here is that Temu users face paying far higher costs, which could undermine the platform's raison d'être (dirt cheap bargains). Instead of being able to 'shop like a billionaire', as Temu puts it, consumers might have to settle for shopping like a humble millionaire. Or not at all on the app. Given the significant challenges the company faces, I don't think the earnings figures can be relied upon. In other words, the P/E ratio of 10 might be misleading if growth decelerates and margins take a hit. If a US-China trade deal is struck, perhaps PDD's strong international growth might resume. But given the murky outlook, I'm going to focus on other growth stocks for my portfolio. The post Down 17% in a week and on a P/E of 10! Should I buy this dirt cheap value stock? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Ben McPoland has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
4 days ago
- Business
- Bloomberg
Chinese Shares Slide in Hong Kong on Renewed Trade Uncertainties
Chinese stocks fell in Hong Kong on Friday, after US Treasury Secretary Scott Bessent said trade talks between the world's two largest economies are 'a bit stalled.' The Hang Seng China Enterprises Index dropped as much as 2.1%, led by technology and electric-vehicle firms.
