Latest news with #GaryNg
South China Morning Post
08-05-2025
- Business
- South China Morning Post
How China's self-sufficiency drive is dividing the global tech ecosystem
China is rapidly advancing its technological self-sufficiency in semiconductors and biotechnology , a trend accelerated by escalating trade tensions with the US, industry experts said in a webinar hosted by the South China Morning Post's China Future Tech. Advertisement 'We need to be ready to see a world that will be increasingly polarised, basically with the bifurcation in supply chains, which could be about manufacturing, which could be about data flows … could be about investment,' said Gary Ng, senior economist at Natixis Corporate & Investment Bank, during the panel discussion on Thursday. Ng noted that the ongoing US-China trade disputes have spurred China's investment in technological independence, especially in semiconductor capabilities. Since 2018, China's research and development spending in technology has increased from about 2 per cent of gross domestic product to 2.6 per cent, surpassing the European Union but still trailing the US. 'We will begin to see two separate tech ecosystems in the future, one maybe dominated by China, the other one led by the US,' Ng said. 'Different countries … will need to decide which one to get into.' Huawei Technologies ' resurgence epitomises China's strides towards tech independence. 'In 2023, August, Huawei surprised the world by quietly releasing for the domestic market its own 5G smartphone, which they had actually given up … because of the [US] trade sanctions,' said Bien Perez, a senior production editor at the Post. Perez added that while Huawei's domestic revival was robust, the lack of access to foreign tech ecosystems – such as Google services on Android – remained a hurdle in global markets. Advertisement
Reuters
06-05-2025
- Business
- Reuters
China's yuan ends at six-month high as carry trades unwind
SHANGHAI, May 6 (Reuters) - China's yuan finished the domestic trading session at a six-month high against the dollar on Tuesday, underpinned by an unwinding of carry trades and a broader rush out of U.S. assets and back into Asia. The onshore yuan ended the domestic session at 7.2169 per dollar, the strongest such close since November 11, 2024 and up 0.76% on the day. here. The surge in the yuan comes alongside broad rallies in currencies of Hong Kong, Taiwan and South Korea as investors rush out of dollars and into home currencies. Hopes of a trade deal between the world's two largest economies have also lent support. The offshore yuan , which remained open during the Labour Day holiday period, surged past the psychologically important 7.2 per dollar mark a day earlier to a level last seen in November. It last traded at 7.2160 as of 0900 GMT. Analysts said the popular trading strategy of borrowing the yuan, the Taiwan dollar and other low-yielding currencies to fund higher yielding dollar assets was no longer profitable following recent dollar slides. "As the strong dollar story reverses, more Chinese exporters may convert their foreign exchange receipts and deposits to the yuan in coming months," said Gary Ng, senior economist at Natixis. "The weaker dollar can provide a window of opportunity for the People's Bank of China (PBOC) to act more in monetary policy as the pressure on capital outflows will be less severe." The yuan surge comes after U.S. President Donald Trump said on Sunday the United States was meeting with many countries, including China, to discuss trade deals, and his main priority with Beijing was to secure a fair trade deal. Beijing had earlier on Friday said it was "evaluating" an offer from Washington to hold talks over Trump's tariffs, although it warned the United States not to engage in "extortion and coercion." "Hopes of a U.S.-China dialogue and signs of progress on possible trade deals have reinforced the de-escalation thematic," said Christopher Wong, FX strategist at OCBC Bank. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate , around which the yuan is allowed to trade in a 2% band, at 7.2008 per dollar, its strongest since April 7 but only 6 pips firmer than the previous setting. "Today's fixing showed that the PBOC is reluctant to see strong appreciation of the yuan," said Becky Liu, head of China macro strategy at Standard Chartered. Liu said the yuan's regional underperformance is expected to continue, noting possible frontloading of foreign exchange demand by overseas listed Chinese companies for their dividend payments and uncertainty around Sino-U.S. trade relations. Khoon Goh, head of Asia research at ANZ, echoed the view and said "with the PBOC making it clear that the fix is going to be anchored above 7.20 and dampening expectations of yuan strength, this should stem the recent appreciation seen in other Asian currencies."
CNA
03-05-2025
- Business
- CNA
Hong Kong authority intervenes in market to check local currency's rise
HONG KONG :Hong Kong's de-facto central bank said it sold HK$46.54 billion ($6 billion) into the market on Saturday to prevent the local currency from strengthening beyond its official peg to the U.S. dollar, the first such intervention in more than four years. The Hong Kong dollar is pegged to a tight band between 7.75 and 7.85 per U.S. dollar. The Hong Kong Monetary Authority intervened as the Hong Kong dollar touched the strong side of that currency convertibility range. The last time it sold Hong Kong dollars to defend the peg was in October 2020. "Seeing the HKD getting stronger means capital inflows, which is not problematic for Hong Kong," said Gary Ng, senior economist at Natixis. The aggregate balance, the key gauge of cash in the banking system, will increase to HK$91.31 billion on May 7, an HKMA spokeswoman said on Saturday.
Reuters
03-05-2025
- Business
- Reuters
Hong Kong authority intervenes in market to check local currency's rise
HONG KONG, May 3 (Reuters) - Hong Kong's de-facto central bank said it sold HK$46.54 billion ($6 billion) into the market on Saturday to prevent the local currency from strengthening beyond its official peg to the U.S. dollar, the first such intervention in more than four years. The Hong Kong dollar is pegged to a tight band between 7.75 and 7.85 per U.S. dollar. The Hong Kong Monetary Authority intervened as the Hong Kong dollar touched the strong side of that currency convertibility range. The last time it sold Hong Kong dollars to defend the peg was in October 2020. "Seeing the HKD getting stronger means capital inflows, which is not problematic for Hong Kong," said Gary Ng, senior economist at Natixis. The aggregate balance, the key gauge of cash in the banking system, will increase to HK$91.31 billion on May 7, an HKMA spokeswoman said on Saturday. ($1 = 7.7500 Hong Kong dollars)
RTHK
02-05-2025
- Business
- RTHK
Q1 GDP posts better-than-expected growth
Q1 GDP posts better-than-expected growth The Hong Kong economy grew by 3.1 percent in the first three months of the year, higher than a 2.5 percent increase in the October-to-December period. Photo: RTHK The Hong Kong economy grew by 3.1 percent in the first quarter – its best performance in five quarters – as surging exports helped boost growth. That compared with a 2.5 percent year-on-year increase in the final three months of 2024. On a quarter-to-quarter basis, the economy grew by 2 percent in the first quarter. The 3.1 percent growth was partly driven by higher exports, which climbed 8.7 percent from a year ago, up from a 1.3 percent increase in the fourth quarter, as exporters rushed to send shipments out after US President Donald Trump announced higher tariffs. Imports also saw strong growth, posting a 7.4 percent jump, compared with a 0.4 percent increase in the previous three months. Exports of services rose further, while imports saw a smaller increase. Commenting on the latest data, Gary Ng, senior economist at Natixis Corporate and Investment Bank, struck a cautious note, saying the city's economy may be at "a more challenging position than it looks on the surface". "There is the wider trade surplus as companies rushed to send their orders to the US before all the tariffs are implemented," he told RTHK. "But when you really look at the core part of the economy, which is household spending, there is a wider year-over-year decline. So I think this is why Hong Kong's economy will likely face continuing pressure, simply because domestic consumption is not showing any significant signs of a rebound for now." The government has projected a full-year GDP growth of 2 percent to 3 percent. Meanwhile, latest government figures showed the city's retail sales fell by 3.5 percent in March year on year to HK$30.1 billion. That's the 13th consecutive month retail sales have dropped. But it was a smaller decline compared with a 7.8 percent decrease in January and February. A government spokesman said the sustained steady growth of the mainland economy and efforts by the SAR to promote tourism will boost the retail sector. But he also cited challenges posed by uncertainty in the global economic outlook and the impact of changing consumption patterns.
