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Business Recorder
2 days ago
- Business
- Business Recorder
China, HK shares drop on US tariff concerns
HONG KONG: Chinese stocks fell on Friday as shares of Apple suppliers weakened after a US court reinstated President Donald Trump's tariffs, while automakers extended losses amid ongoing price war concerns. China's blue-chip CSI 300 index closed 0.5% lower and registered its second week of loss. The Shanghai Composite index also dropped 0.5% to 3,347.49 points. The Hang Seng China Enterprises Index fell 1.5% and Hong Kong's benchmark Hang Seng Index lost 1.2%. Both the indexes snapped their six-week winning streaks. 'Sentiment dropped further amid lower turnover and lukewarm macro prints,' Laura Wang, Chief China Equity Strategist at Morgan Stanley wrote in a note on Friday. 'No signs of near-term stimulus step-up as the interim tariff truce continues.' A federal appeals court on Thursday temporarily reinstated the most sweeping of US President Donald Trump's tariffs, a day after a trade court blocked them, saying the president exceeded his authority. The CSI Consumer Electronics Thematic Index lost 2%. Apple iPhone assembler Foxconn lost 3.9%, BYD Electronics tumbled 6% and Lens Tech weakened 3.4%. Auto shares continued their downward trend as price war concerns lingered. Shares of Xpeng, BYD and Nio slipped by 3.3% to 5%. Cushioning the losses, the CSI Banks Index advanced 0.6% after news that People's Bank of China (PBOC) Governor Pan Gongsheng will attend the opening ceremony of the Lujiazui Forum in Shanghai next month and announce several major financial policies.
Time of India
3 days ago
- Business
- Time of India
China, HK shares drop on US tariff concerns, auto makers tumble
Chinese stocks fell on Friday as shares of Apple suppliers weakened after a U.S. court reinstated President Donald Trump's tariffs, while automakers extended losses amid ongoing price war concerns. China's blue-chip CSI 300 index closed 0.5% lower and registered its second week of loss. The Shanghai Composite index also dropped 0.5% to 3,347.49 points. The Hang Seng China Enterprises Index fell 1.5% and Hong Kong's benchmark Hang Seng Index lost 1.2%. Both the indexes snapped their six-week winning streaks. "Sentiment dropped further amid lower turnover and lukewarm macro prints," Laura Wang, Chief China Equity Strategist at Morgan Stanley wrote in a note on Friday. "No signs of near-term stimulus step-up as the interim tariff truce continues." A federal appeals court on Thursday temporarily reinstated the most sweeping of U.S. President Donald Trump's tariffs, a day after a trade court blocked them, saying the president exceeded his authority. The CSI Consumer Electronics Thematic Index lost 2%. Apple iPhone assembler Foxconn lost 3.9%, BYD Electronics tumbled 6% and Lens Tech weakened 3.4%. Auto shares continued their downward trend as price war concerns lingered. Shares of Xpeng, BYD and Nio slipped by 3.3% to 5%. Cushioning the losses, the CSI Banks Index advanced 0.6% after news that People's Bank of China (PBOC)Governor Pan Gongsheng will attend the opening ceremony of the Lujiazui Forum in Shanghai next month and announce several major financial policies. Mainland China's stock, bond, foreign exchange and commodity futures markets will be closed on Monday, June 2, for the Dragon Boat holiday. They will resume trade on June 3.
South China Morning Post
3 days ago
- Business
- South China Morning Post
Trump's non-tariff curbs on China may hurt trade talks, sentiment, Morgan Stanley says
The Trump administration's non-tariff measures against China – including a student visa ban and the delisting of mainland companies from American stock exchanges – could derail trade negotiations and weigh on near-term investor sentiment, according to Morgan Stanley. Advertisement The Chinese government wants to achieve a de-escalation in the tariff and trade issues with the US, but would not be happy or satisfied if other non-tariff measures continued to inflame ties, said Laura Wang, chief China equity strategist at the US investment bank, at a media briefing on Friday. 'I would stay very alert to these measures,' she said. The student visa ban, stock delisting and 'some of the other things could potentially come in the next few months' and would require a careful assessment in terms of the damage to the US-China relationship, she added. Secretary of State Marco Rubio upped the ante this week when he said the US would 'aggressively' revoke visas of Chinese students, including those with connections to the Communist Party or those enrolled in critical fields in the US. China said the discriminatory move would further damage the US's image. 03:01 US appeals court allows Donald Trump's tariffs to stay in effect US appeals court allows Donald Trump's tariffs to stay in effect Wang said the bank was less concerned about the fallout from any delistings of Chinese companies, as many of the big ones trade in Hong Kong. There were 286 such stocks with a combined market capitalisation of US$1.1 trillion as of March 7, according to a US government report.
Mint
3 days ago
- Automotive
- Mint
China, HK shares dip as Apple suppliers slip on tariff concerns, auto makers tumble
HONG KONG, - Chinese stocks fell on Friday as Apple suppliers weakened after a U.S. court reinstated the tariffs, while automakers extended losses amid ongoing price war concerns, pushing major indices toward weekly declines. ** At the midday break, China's blue-chip CSI300 index weakened 0.3%, heading to the second week of loss. The Shanghai Composite index also dropped 3% to 3,353.07 points. ** Declines were sharper in Hong Kong. The Chinese H-share index listed in Hong Kong, the Hang Seng China Enterprises Index fell 1.7% and Hong Kong's benchmark Hang Seng Index lost 1.5%, both set to snap a six-week winning streak. ** "Sentiment dropped further amid lower turnover and lukewarm macro prints," Laura Wang, Chief China Equity Strategist at Morgan Stanley wrote in a note on Friday. ** "No signs of near-term stimulus step-up as the interim tariff truce continues." ** Weighing on the markets on Friday, Apple suppliers tumbled after an appeals court kept President Donald Trump's tariffs in effect, a day after a trade court blocked them, saying the president exceeded his authority. ** iPhone assembler Foxconn lost 3.5%, BYD Electronics tumbled 5% and Lens Tech weakened 3.8%. ** Auto shares continued the downward trend as price war concerns linger. Shares of Xpeng, BYD and Nio all slipped more than 4%. ** Cushioning the losses, the CSI Banks Index advanced 1% after news that People's Bank of China Governor Pan Gongsheng will attend the opening ceremony of the Lujiazui Forum in Shanghai next month and announce several major financial policies. ** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.5% while Japan's Nikkei index was down 1.3%. This article was generated from an automated news agency feed without modifications to text.
Associated Press
14-05-2025
- Business
- Associated Press
Global Times: China-US trade talks, market resilience boost confidence in Chinese assets
BEIJING, May 14, 2025 /PRNewswire/ -- China's capital market is witnessing a wave of positive developments. Just days after Chinese policymakers issued major policy measures to stabilize the market, China and the US announced on Monday that the two countries have reached what has been described by some as a better-than-expected breakthrough to ease tariff tension. With the growing positive headlines come greater confidence in Chinese assets. Some global financial institutions have moved swiftly to raise their outlooks for Chinese stocks, while others are making adjustments to their investment strategies to focus on Chinese high-tech stocks. While the outcome of the China-US trade talks offered a significant boost, China's policy orientation, market resilience and technological breakthroughs in areas such as artificial intelligence (AI) and semiconductors are underpinning the long-term growth potential of Chinese assets, according to analysts and reports from several major global financial institutions. Near-term catalyst 'We see this development as a solid near-term catalyst for the China market,' Laura Wang, chief China equity strategist at Morgan Stanley, said in a research note shared with the Global Times on Monday, referring to the agreement reached between China and the US. Following two days of talks in Switzerland, China and the US released a joint statement on Monday, announcing several key agreements, most notably a significant reduction in tariffs on both sides. Specifically, the US will remove a total of 91-percent additional tariffs on Chinese products and China will accordingly cut 91-percent countermeasure additional tariffs against US imports. In addition, the US will suspend a 24-percent 'reciprocal tariff' for 90 days, and China likewise will suspend a 24-percent countermeasure tariff for the same period, according to the Ministry of Commerce. 'This news greatly boosted the confidence of the global capital market,' Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times on Tuesday, noting global markets have responded positively to the news. Wang Tao, head of Asia economics and chief China economist at UBS Investment Bank, said in a statement sent to the Global Times on Tuesday that 'the trade war de-escalation improves growth outlook.' The closely watched US-China trade talks concluded with 'substantial progress' on reducing bilateral reciprocal tariffs significantly, which is more positive than many had expected, Wang said. Song Yu, chief China economist at BlackRock, told the Securities Times that the recent progress in China-US trade relations is a significant boost to the macroeconomic environment. This, combined with the stronger-than-expected April export data and intensified domestic economic policy support, as evidenced by the comprehensive package of policies rolled out by three major Chinese government departments last week, is expected to 'bolster the confidence of both domestic and international investors in Chinese assets, acting as a powerful catalyst for the Chinese market,' Song said. Strong resilience Even before China and the US reached major progress in the trade talks, global investors had already become increasingly bullish on the investment prospects of China's capital market, expressing strong confidence in its strong resilience and long-term growth potential. Some major financial institutions have been quick to adjust their investment strategies. UBS Global Wealth Management issued its investment views on Monday, expressing preference for leading internet companies driving AI development in China and attractive opportunities across the broader semiconductor supply chain. 'We believe the continued breakthroughs in China's AI space should help drive the tech sector higher amid signs of a potential de-escalation in the US-China trade war. We now rate Chinese tech stocks as 'Attractive,' and expect the sector to post an earnings growth of 30 percent this year,' the wealth management firm said. In the research note on Monday, Wang from Morgan Stanley also noted 'structural investment opportunities in tech/artificial intelligence and new consumption related areas.' In a May 8 report, Goldman Sachs maintained its 'overweight' rating on Chinese equities and raised its 12-month index targets for MSCI China and CSI300 to 78 and 4,400, implying 7 percent and 15 percent potential returns. The report noted that Chinese financial assets have remained resilient, supported by factors such as broad US dollar weakness, signs of easing US-China trade tensions, robust activity growth as shown in hard data, and effective domestic policy easing. Last week, China's monetary and financial authorities unveiled a raft of supportive measures, including policy rate and reserve requirement ratio (RRR) cuts, as the country stepped up efforts to stabilize markets and sustain economic recovery amid external headwinds, according to Xinhua. In one of its key policy actions, the People's Bank of China, the country's central bank, announced an RRR cut of 0.5 percentage points for eligible financial institutions from May 15. Notably, the RRR for auto financing and financial leasing companies will be slashed from 5 percent to 0 percent, Xinhua reported. The timing of the announcement, in particular RRR and policy rate cuts, was seen as a positive surprise by some investors. Goldman Sachs noted that the encouraging aspect of the latest easing package lies in its targeted and increasingly demand-driven approach, which supports the government's goal of fostering a healthy stock market anchored by stable capital. During a press conference announcing the policy measures last week, Wu Qing, chairman of the China Securities Regulatory Commission, highlighted the resilience of the A-share market and emphasized the net profits growth of listed companies achieved in the first quarter. A-share listed companies are resilient, supported by strong domestic demand, diversified export markets, and rising competitiveness. In Q1 2025, their net profits rose 3.6 percent year-on-year, with real-economy firms seeing a 4.3 percent increase, Wu said, while pledging efforts to keep capital markets stable and active. View original content: SOURCE Global Times
