Latest news with #LauraWang
South China Morning Post
a day ago
- Business
- South China Morning Post
US$2.7 bn of global funds swarmed Chinese stocks in July, and the flow will be ‘stronger'
Foreign inflows to Chinese stocks will probably continue after the summer, as a regulatory push to boost shareholder returns, appealing valuations and rising expectations of interest-rate cuts in the US lure investors, according to Morgan Stanley. Advertisement The rotation back to Chinese stocks was expected to be 'stronger' after two consecutive months of net buying by global long-only funds, analysts led by Laura Wang at the US investment bank said in a report on Friday. Long-only funds poured US$2.7 billion into Chinese stocks in July, accelerating from a net inflow of US$1.2 billion in June, the report said. That came despite holdings reductions by some large actively managed mutual funds focused on Asia excluding Japan, it said. Shunned over the past few years, Chinese stocks are now back on the radar for global investors after trade tensions between Beijing and Washington de-escalated and the mainland's first-half economic growth exceeded estimates. Hong Kong's Hang Seng Index has gained 24 per cent this year, and the CSI 300 Index of mainland-listed shares has added almost 5 per cent. 'China, with the second-best earnings revision breadth trend and a more fair valuation compared to other markets, should once again attract additional fund flows,' Wang said. 'As we approach the Fed rate cut schedule and a higher consensus towards a weaker US dollar, global investors' willingness to allocate into non-US markets should also pick up.' Advertisement The bank's assessment dovetails with China's official data on foreign buying. Overseas investors bought a combined US$10.1 billion of onshore stocks and mutual funds in the first half, starting to reverse the flight over the past two years, the foreign-exchange regulator said last month.
South China Morning Post
a day ago
- Business
- South China Morning Post
Chinese stocks' foreign inflows gathering steam, Morgan Stanley says
Foreign inflows to Chinese stocks will probably continue after the summer, as a regulatory push to boost shareholder returns, appealing valuations and rising expectations of interest-rate cuts in the US lure investors, according to Morgan Stanley. The rotation back to Chinese stocks was expected to be 'stronger' after two consecutive months of net buying by global long-only funds, analysts led by Laura Wang at the US investment bank said in a report on Friday. Long-only funds poured US$2.7 billion into Chinese stocks in July, accelerating from a net inflow of US$1.2 billion in June, the report said. That came despite holdings reductions by some large actively managed mutual funds focused on Asia excluding Japan, it said. Shunned over the past few years, Chinese stocks are now back on the radar for global investors after trade tensions between Beijing and Washington de-escalated and the mainland's first-half economic growth exceeded estimates. Hong Kong's Hang Seng Index has gained 24 per cent this year, and the CSI 300 Index of mainland-listed shares has added almost 5 per cent. 'China, with the second-best earnings revision breadth trend and a more fair valuation compared to other markets, should once again attract additional fund flows,' Wang said. 'As we approach the Fed rate cut schedule and a higher consensus towards a weaker US dollar, global investors' willingness to allocate into non-US markets should also pick up.' The bank's assessment dovetails with China's official data on foreign buying. Overseas investors bought a combined US$10.1 billion of onshore stocks and mutual funds in the first half, starting to reverse the flight over the past two years, the foreign-exchange regulator said last month.
Business Recorder
4 days ago
- Business
- Business Recorder
China stocks end week near 10-month high
SHANGHAI: China stocks closed slightly down on Friday, but ended the week near their highest level in 10 months, as upbeat economic data lifted sentiment and investors largely looked past US tariff concerns. Hong Kong shares declined on the day. China's blue-chip CSI300 Index ended 0.2% lower, while the Shanghai Composite Index was down 0.1%. Hong Kong benchmark Hang Seng slipped 0.9%. The Shanghai Composite Index rose to 3,645 points in morning trades, its highest level since October 2024. China stocks have steadily climbed this week, supported by upbeat trade and service activity data. For the week, the CSI300 Index gained 1.2%, while the Hang Seng Index rose 1.4%. 'The market may be underpricing the risk of near-term deterioration in the US-China relationship,' said Morgan Stanley strategists led by Laura Wang. The strategists urged investors to monitor developments in trade tensions and flagged the upcoming NPC Standing Committee meeting and second-quarter earnings season as potential catalysts for market direction. In the interim, they prefer mainland-listed A-shares over Hong Kong-listed H-shares, citing stronger relative performance during periods of global market volatility. US President Donald Trump said on Wednesday that he could announce further tariffs on China over its purchases of Russian oil, depending on the developments in the trade discussions. China faces an August 12 deadline to reach a durable tariff agreement with Trump's administration. Tech majors traded in Hong Kong were down 1.6%, while materials shares were up 2.5%. Shares of semiconductors dropped nearly 2%, weighed by an 8% fall in China's largest chipmaker SMIC after it reported weaker-than-expected second-quarter earnings.
RTHK
4 days ago
- Business
- RTHK
HK stocks end week down as tariff deadline looms
HK stocks end week down as tariff deadline looms The Hang Seng Index ended trading for Friday down 222 points, or 0.89 percent, at 24,858. File photo: RTHK Mainland stocks closed slightly down on Friday, but ended the week near their highest level in 10 months, as upbeat economic data lifted sentiment and investors largely looked past US tariff concerns, while Hong Kong shares declined. The benchmark Hang Seng Index ended trading for the day down 222 points, or 0.89 percent, at 24,858 but is up 1.2 percent for the week. The Hang Seng China Enterprises Index fell 0.96 percent to 8,895 while the Hang Seng Tech Index fell 1.56 percent to 5,460. Tech majors were down 1.6 percent while materials shares were up 2.5 percent. Shares of semiconductors dropped nearly two percent, weighed by an eight percent fall in China's largest chipmaker SMIC after it reported weaker-than-expected second-quarter earnings. On the mainland, the benchmark Shanghai Composite Index ended down 0.12 percent at 3,635 while the Shenzhen Component Index was 0.26 percent lower at 11,128. Their combined turnover was 1.71 trillion yuan, down from 1.83 trillion yuan on Thursday. Shares related to the high-speed railway, mega-hydropower and electric power industries led gains while stocks related to the e-commerce and semiconductor sectors suffered major losses. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 0.38 percent to close at 2,333. China stocks have steadily climbed this week, supported by upbeat trade and service activity data. "The market may be underpricing the risk of near-term deterioration in the US-China relationship," said Morgan Stanley strategists led by Laura Wang. The strategists urged investors to monitor developments in trade tensions and flagged the upcoming National People' Congress Standing Committee meeting and second-quarter earnings season as potential catalysts for market direction. In the interim, they prefer mainland-listed A-shares over Hong Kong-listed H-shares, citing stronger relative performance during periods of global market volatility. China faces an August 12 deadline to reach a durable tariff agreement with the Trump administration. (Reuters/Xinhua)
Mint
5 days ago
- Business
- Mint
China stocks set to end week at 10-month high on strong data; HK lags
SHANGHAI, - China stocks climbed on Friday, on track to close the week at their highest level in 10 months, as upbeat economic data lifted sentiment and investors largely looked past U.S. tariff concerns. Hong Kong shares declined on the day. ** China's blue-chip CSI300 Index and the Shanghai Composite Index were up 1% each by the lunch break. Hong Kong benchmark Hang Seng slipped 0.7%. ** The Shanghai Composite Index rose to 3,642 points on Friday, its highest level since October 2024. ** China stocks have steadily climbed this week, supported by upbeat trade and service activity data. For the week, the CSI300 Index has gained 1.5% so far, while the Hang Seng Index rose 1.7%. ** "The market may be underpricing the risk of near-term deterioration in the U.S.-China relationship," said Morgan Stanley strategists led by Laura Wang. ** The strategists urged investors to monitor developments in trade tensions and flagged the upcoming NPC Standing Committee meeting and second-quarter earnings season as potential catalysts for market direction. In the interim, they expressed a preference for mainland-listed A-shares over their Hong Kong-listed H-share counterparts. ** U.S. President Donald Trump said on Wednesday that he could announce further tariffs on China, similar to the 25% duties announced earlier on India over its purchases of Russian oil, depending on the developments in the trade discussions. ** China is facing an August 12 deadline to reach a durable tariff agreement with Trump's administration. ** Tech majors traded in Hong Kong were down 1%, while materials shares were up nearly 2%. ** Shares of semiconductors dropped 1.4%, weighed down by a nearly 6% fall in China's largest chipmaker SMIC after it reported weaker-than-expected second-quarter earnings. This article was generated from an automated news agency feed without modifications to text.
