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Business Recorder
21 hours ago
- Business
- Business Recorder
China stocks extend 5-week rally ahead of trade talks
HONG KONG: China stocks extended their five-week rally on Monday, with the rare earth sector climbing to a three-year high ahead of crucial trade talks with the United States, while insurers gained following an industry policy change that boosted sentiment. The Shanghai Composite index reversed earlier losses to close up 0.1% at 3,597.94, hovering near the highest level in 3-1/2 years. The blue-chip CSI300 index added 0.2%. The rare earth sector climbed 1.5% to a fresh three-year high, lifting onshore markets higher, as top US and Chinese economic officials prepare to resume talks in Stockholm later in the day. The discussions will likely extend their trade truce by three months, preventing the implementation of higher tariffs, according to analysts. The insurance sector added nearly 3% to rank among the best performers onshore, after the industry body cut the reference rate for life insurance products. 'Investor concerns on US-China trade frictions appear to have eased,' Kinger Lau, chief China equity strategist at Goldman Sachs, said in a note. 'A potential US-China trade deal could be a market-clearing event for Chinese stocks.' The bank raised its 12-month MSCI China index target to 90 from 85, representing an 11% potential rise, due to improved US-China relations, reduced regulatory risks, stronger yuan and supportive liquidity conditions. Weighing on the markets on Monday, commodity-related companies pared last week's rally which was spurred by Beijing's campaign to tackle overcapacity. Indexes tracking steel and coal sectors lost 1.4% and 2.9%, respectively. Hong Kong's benchmark Hang Seng Index rose 0.7% to 25,562.13 and continued to hover near the highest since November 2021.
RTHK
2 days ago
- Business
- RTHK
Insurance fillip for HK stocks amid mainland gains
Insurance fillip for HK stocks amid mainland gains The Hang Seng Index closed 173 points, or 0.68 percent, up at 25,562 on Monday. File photo: RTHK Mainland China stocks extended their five-week rally on Monday, with the rare earth sector climbing to a three-year high ahead of crucial trade talks with the United States, while insurers gained following an industry policy change that boosted sentiment. In Hong Kong, the benchmark Hang Seng Index ended up 173 points, or 0.68 percent, at 25,562. The Hang Seng China Enterprises Index rose 0.29 percent to end at 9,17 while the Hang Seng Tech Index fell 0.24 percent to close at 5,664. Insurers AIA, Ping An and China Life gained between 2 percent and 4.9 percent. However, the tech index lost 0.2 percent. Up north, the benchmark Shanghai Composite Index rose 0.12 percent to 3,597, hovering near the highest level in three-and-a-half years while the Shenzhen Component Index closed 0.44 percent higher at 11,217. The combined turnover of these two indexes stood at about 1.74 trillion yuan, down from 1.79 trillion yuan on Friday. Stocks related to copper clad laminate and printed circuit board led gains, while stocks related to coal and antimony suffered major losses. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, increased 0.96 percent to close at 2,362. The Sino-US trade talks will likely see the trade truce extended by three months, preventing the implementation of higher tariffs, according to analysts. The insurance sector added nearly 3 percent to rank among the best performers onshore, after the industry body cut the reference rate for life insurance products. "Investor concerns on U.S.-China trade frictions appear to have eased," Kinger Lau, chief China equity strategist at Goldman Sachs, said in a note. "A potential US-China trade deal could be a market-clearing event for Chinese stocks." (Reuters/Xinhua)
Business Recorder
26-05-2025
- Automotive
- Business Recorder
China, HK stocks weaken
HONG KONG: China and Hong Kong stocks retreated on Monday as automobile shares slid on price war concerns and Apple suppliers dropped on potential US tariffs. At the close, the Shanghai Composite index weakened 0.1% to 3,346.84. The blue-chip CSI300 index dropped 0.6%. In Hong Kong, the benchmark Hang Seng Index was down 1.4% at 23,282.33. The Chinese H-share index listed in Hong Kong, the Hang Seng China Enterprises Index, fell 1.7%. Car-makers slipped, weighing on both onshore and offshore markets, after BYD slashed prices on some of the models to spur sales as competition heats up. Its Hong Kong-listed shares dipped 5.9%, while rival Geely Auto tumbled 9.5%. The CSI All Share Automobiles Index lost 2.9%, the biggest single-day drop in five weeks, while the Hang Seng Automobile Index in Hong Kong tumbled 4.9%. 'The price cuts could put some short-term pressure on earnings,' analysts at Sinolink Securities said in a note. 'It got investors concerned about profitability, and the sector is likely to enter a correction.' Apple supplier stocks also lost some ground after US President Donald Trump threatened tariffs on imported iPhones. iPhone assembler Luxshare lost 0.2%. However, China's yuan has strengthened past the 7.17 level after the central bank tightened the midpoint fixing, and analysts say the firming trend of the currency should lend support to the nation's stocks. 'We estimate every 1% of RMB increase versus the USD could boost Chinese equities by 3%,' Goldman Sachs' China equity strategist Kinger Lau wrote in a note. Sectors such as consumer discretionary, property, and brokers typically outperform when the yuan appreciates, he added.
RTHK
26-05-2025
- Automotive
- RTHK
Auto price war concerns jam brakes on HK stocks
Auto price war concerns jam brakes on HK stocks The Hang Seng Index lost 318.93 points, or 1.35 percent, to end the day at 23,282.33. File photo: AFP Mainland Chinese and Hong Kong stocks retreated on Monday as automobile shares slid on price war concerns and Apple suppliers dropped on potential US tariffs. In Hong Kong, the benchmark Hang Seng Index lost 318.93 points, or 1.35 percent, to end the day at 23,282.33. The Hang Seng China Enterprises Index fell 1.7 percent to end at 8,437.64 points while the Hang Seng Tech Index fell 1.7 percent to end at 5,157.65. Carmakers slipped, weighing on both onshore and offshore markets, after BYD slashed prices on some of the models to spur sales as competition heats up. Its Hong Kong-listed shares dipped 5.9 per cent, while rival Geely Auto tumbled 9.5 per cent. The CSI All Share Automobiles Index lost 2.9 per cent, the biggest single-day drop in five weeks, while the Hang Seng Automobile Index in Hong Kong tumbled 4.9 per cent. "The price cuts could put some short-term pressure on earnings," analysts at Sinolink Securities said in a note. "It got investors concerned about profitability, and the sector is likely to enter a correction." Apple supplier stocks also lost some ground after US President Donald Trump threatened tariffs on imported iPhones. iPhone assembler Luxshare lost 0.2 per cent. Chinese stocks closed lower, with the benchmark Shanghai Composite Index down 0.05 percent at 3,346.84. The Shenzhen Component Index closed 0.41 percent lower at 10,091.16. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 0.8 percent to close at 2,005.26. Tokyo stocks closed higher on news that the United States had agreed to delay the tariff imposition on EU goods. The benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, closed at 37,531.53, up 371.06 points, or 1 percent. However, China's yuan has strengthened past the 7.17 level after the central bank tightened the midpoint fixing, and analysts say the firming trend of the currency should lend support to the nation's stocks. "We estimate every 1 per cent of RMB increase versus the USD could boost Chinese equities by 3 per cent," Goldman Sachs' China equity strategist Kinger Lau wrote in a note. Sectors such as consumer discretionary, property, and brokers typically outperform when the yuan appreciates, he added. (Reuters/Xinhua)
RTHK
26-05-2025
- Automotive
- RTHK
Auto price war concerns jam brakes on HK stocks
Auto price war concerns jam brakes on HK stocks The Hang Seng Index lost 318.93 points, or 1.35 percent, to end the day at 23,282.33. File photo: AFP Mainland Chinese and Hong Kong stocks retreated on Monday as automobile shares slid on price war concerns and Apple suppliers dropped on potential US tariffs. In Hong Kong, the benchmark Hang Seng Index lost 318.93 points, or 1.35 percent, to end the day at 23,282.33. The Chinese H-share index listed in Hong Kong, the Hang Seng China Enterprises Index, fell 1.7 per cent. Carmakers slipped, weighing on both onshore and offshore markets, after BYD slashed prices on some of the models to spur sales as competition heats up. Its Hong Kong-listed shares dipped 5.9 per cent, while rival Geely Auto tumbled 9.5 per cent. The CSI All Share Automobiles Index lost 2.9 per cent, the biggest single-day drop in five weeks, while the Hang Seng Automobile Index in Hong Kong tumbled 4.9 per cent. "The price cuts could put some short-term pressure on earnings," analysts at Sinolink Securities said in a note. "It got investors concerned about profitability, and the sector is likely to enter a correction." Apple supplier stocks also lost some ground after US President Donald Trump threatened tariffs on imported iPhones. iPhone assembler Luxshare lost 0.2 per cent. Chinese stocks closed lower, with the benchmark Shanghai Composite Index down 0.05 percent at 3,346.84. The Shenzhen Component Index closed 0.41 percent lower at 10,091.16. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 0.8 percent to close at 2,005.26. Tokyo stocks closed higher on news that the United States had agreed to delay the tariff imposition on EU goods. The benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, closed at 37,531.53, up 371.06 points, or 1 percent. However, China's yuan has strengthened past the 7.17 level after the central bank tightened the midpoint fixing, and analysts say the firming trend of the currency should lend support to the nation's stocks. "We estimate every 1 per cent of RMB increase versus the USD could boost Chinese equities by 3 per cent," Goldman Sachs' China equity strategist Kinger Lau wrote in a note. Sectors such as consumer discretionary, property, and brokers typically outperform when the yuan appreciates, he added. (Reuters/Xinhua)
