Latest news with #LujiazuiForum
Forbes
5 days ago
- Business
- Forbes
China Market Update: Hong Kong's Hopes Hinge On Trump-Xi Call & Policy Meeting Stimulus
CLN Asian equities delivered mixed performance overnight on hopes that a phone call between President Trump and President Xi would take place this week. Hong Kong outperformed, buoyed by a stronger renminbi (RMB) versus the US dollar, while South Korea was closed for the presidential election and Thailand was closed for the Queen's birthday. The Organization for Economic Cooperation and Development (OECD) emphasized that economic cooperation is essential for development, lowering its 2025 global GDP growth forecast to 2.9% from 3.2%. The OECD also reduced its US growth target to 1.6% from 2.2%, citing the ongoing US-induced trade war as a primary factor. Mainland China's economic data appeared to confirm the negative impact of the trade war. The May Caixin Manufacturing Purchasing Managers' Index (PMI) came in at 48.3, down from April's 50.4 and below expectations of 50.7. Caixin's private survey, which focuses on smaller companies, may have underperformed the PMI released by the National Bureau of Statistics (NBS) due to the higher export exposure of the firms included in the survey. Investors may view the weak reading as a catalyst for policymakers to introduce strong stimulus measures at the upcoming Lujiazui Forum, which begins on June 18th. Hong Kong had a strong session, with nearly four advancing stocks for every declining stock. However, trading volumes were only at 100% of the one-year average, and stronger volumes would have been preferred. Banks, internet stocks, and auto companies led gains, while underperformers were limited. Appliance giant Midea Group fell -1.82% in Hong Kong and -3.82% in Mainland China after the Chairman commented that he was not concerned about Xiaomi entering the home appliance industry, but his remark that Midea 'had no moat' may have unsettled investors. The auto and electric vehicle (EV) sector benefited from robust May sales figures. Li Auto rose +5.82% following its first-quarter results and strong May sales. Xiaomi's CEO announced that the company will reach profitability later this year and that the new YU7's price will be revealed soon. After the close, the Ministry of Commerce (MoC) and several departments announced new measures to promote EV and hybrid auto sales in rural areas. Mainland China equities also posted gains, though enthusiasm lagged behind Hong Kong. Financials led the advance, as banks, insurance, and brokerages all performed well. National Team exchange-traded fund (ETF) volumes were below average. Looking ahead, markets are watching to see whether a Trump–Xi phone conversation can pave the way for a summit between the two leaders. New Content Read our latest article: New Drivers For China Healthcare: AI Med-Tech Innovation, Cancer Treatment, & Favorable Balance of Trade Please click here to read Chart1 Chart2 Chart3 Chart4 Chart5 Chart6
Yahoo
30-05-2025
- Business
- Yahoo
China's $70B Stimulus Bomb Could Ignite Massive Investment Wave -- Just as Tariffs Return
China is loading a new weapon in its stimulus arsenala $70 billion capital injection that could be leveraged up to fund a wave of domestic infrastructure projects. According to people familiar with the plan, the financing tool will run through China's three policy banks, who'll raise funds by issuing bonds or taking direct stakes in strategic projects. That initial capital could unlock multiple layers of debt financing, potentially multiplying total investment several times over. Focus areas? Artificial intelligence, the digital economy, and consumer-linked infrastructureprecisely the sectors Beijing wants to insulate from global volatility. The timing isn't accidental. This comes as trade tensions with the US bubble back up, just weeks after a short-lived truce. Officials are hoping that ramping up domestic demand will help counter a rocky export outlook. The People's Bank of China is also expected to provide liquidity support if needed. And while no official launch date has been confirmed, China's National Development and Reform Commission has promised to finalize key projects and kick off the new tool by the end of June. The setup echoes a 2022 pandemic-era program, which raised over 740 billion yuan via policy bank bonds and helped keep the economy afloat during lockdowns. Markets will be watching closely. Tesla (NASDAQ:TSLA) and other firms deeply embedded in China's EV and digital infrastructure ecosystems could see knock-on effects depending on how capital deployment shapes demand and industrial policy. There's also chatter that more financial policy updates will drop mid-June at the Lujiazui Forum. For now, this new financing mechanism could be the clearest signal yet that Beijing is betting on high-tech infrastructure and consumer enginesnot exportsto drive its next phase of growth. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
30-05-2025
- Business
- Yahoo
China's $70B Stimulus Bomb Could Ignite Massive Investment Wave -- Just as Tariffs Return
China is loading a new weapon in its stimulus arsenala $70 billion capital injection that could be leveraged up to fund a wave of domestic infrastructure projects. According to people familiar with the plan, the financing tool will run through China's three policy banks, who'll raise funds by issuing bonds or taking direct stakes in strategic projects. That initial capital could unlock multiple layers of debt financing, potentially multiplying total investment several times over. Focus areas? Artificial intelligence, the digital economy, and consumer-linked infrastructureprecisely the sectors Beijing wants to insulate from global volatility. The timing isn't accidental. This comes as trade tensions with the US bubble back up, just weeks after a short-lived truce. Officials are hoping that ramping up domestic demand will help counter a rocky export outlook. The People's Bank of China is also expected to provide liquidity support if needed. And while no official launch date has been confirmed, China's National Development and Reform Commission has promised to finalize key projects and kick off the new tool by the end of June. The setup echoes a 2022 pandemic-era program, which raised over 740 billion yuan via policy bank bonds and helped keep the economy afloat during lockdowns. Markets will be watching closely. Tesla (NASDAQ:TSLA) and other firms deeply embedded in China's EV and digital infrastructure ecosystems could see knock-on effects depending on how capital deployment shapes demand and industrial policy. There's also chatter that more financial policy updates will drop mid-June at the Lujiazui Forum. For now, this new financing mechanism could be the clearest signal yet that Beijing is betting on high-tech infrastructure and consumer enginesnot exportsto drive its next phase of growth. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
China's $70B Stimulus Bomb Could Ignite Massive Investment Wave -- Just as Tariffs Return
China is loading a new weapon in its stimulus arsenala $70 billion capital injection that could be leveraged up to fund a wave of domestic infrastructure projects. According to people familiar with the plan, the financing tool will run through China's three policy banks, who'll raise funds by issuing bonds or taking direct stakes in strategic projects. That initial capital could unlock multiple layers of debt financing, potentially multiplying total investment several times over. Focus areas? Artificial intelligence, the digital economy, and consumer-linked infrastructureprecisely the sectors Beijing wants to insulate from global volatility. The timing isn't accidental. This comes as trade tensions with the US bubble back up, just weeks after a short-lived truce. Officials are hoping that ramping up domestic demand will help counter a rocky export outlook. The People's Bank of China is also expected to provide liquidity support if needed. And while no official launch date has been confirmed, China's National Development and Reform Commission has promised to finalize key projects and kick off the new tool by the end of June. The setup echoes a 2022 pandemic-era program, which raised over 740 billion yuan via policy bank bonds and helped keep the economy afloat during lockdowns. Markets will be watching closely. Tesla (NASDAQ:TSLA) and other firms deeply embedded in China's EV and digital infrastructure ecosystems could see knock-on effects depending on how capital deployment shapes demand and industrial policy. There's also chatter that more financial policy updates will drop mid-June at the Lujiazui Forum. For now, this new financing mechanism could be the clearest signal yet that Beijing is betting on high-tech infrastructure and consumer enginesnot exportsto drive its next phase of growth. This article first appeared on GuruFocus.
