Latest news with #NorthofSouthCapital
RTHK
13-05-2025
- Business
- RTHK
HK stocks slide as tariffs euphoria turns to caution
HK stocks slide as tariffs euphoria turns to caution The Hang Seng Index ended the day down 441.19 points, or 1.87 percent, at 23,108.27. File photo: RTHK Chinese shares notched up marginal gains on Tuesday whereas those in Hong Kong fell, as the initial euphoria over a Sino-US trade truce involving the reduction and delay of tariffs gave way to caution. An agreement between US and Chinese officials after weekend talks in Geneva led to a rally in global markets and the US dollar. However, fears that further negotiations could prove a slog still lingered and weighed on investor sentiment. The Hong Kong market ended lower, with the benchmark Hang Seng Index down 441.19 points, or 1.87 percent, to close at 23,108.27. The Hang Seng China Enterprises Index dropped 2.02 percent to end at 8,386.21, while the Hang Seng Tech Index slipped 3.26 percent to close at 5,269.66. China's blue-chip CSI300 Index edged up 0.1 percent, while the Shanghai Composite Index added less than 0.2 percent. The trade deal exceeded market expectations but investors were confused and worried what changes might come after the "temporary peace", Jefferies analysts said in a client note. "Institutional investors are becoming more cautious" and odds for policy support from Beijing in the coming months may drop following the unexpectedly positive trade outcome, they said. Chinese stocks have recovered from a sell-off last month triggered by US President Donald Trump's punitive tariff measures on his so-called Liberation Day on April 2. The CSI300 index is now trading 0.2 percent above that day. "We have been adding to China over the past months on the view that in the long term the current level of tariffs would be significantly reduced," said Kamil Dimmich, partner and portfolio manager at North of South Capital EM fund. "Markets have been fairly quick to price in the anticipated 'normalization', so we are no longer in a rush to add but remain happy with our exposures in China. Most likely there will be further ups and downs over the coming weeks and months so there may be better times to add," said Dimmich. (Reuters/Xinhua)
The Star
13-05-2025
- Business
- The Star
China stocks flat, Hong Kong retreats as tariff optimism fades
HONG KONG: Chinese stock prices were little changed on Tuesday whereas those in Hong Kong fell, as initial euphoria over a Sino-U.S. trade truce involving the reduction and delay of tariffs gave way to caution. An agreement between U.S. and Chinese officials after weekend talks in Geneva led to a rally in global markets and the U.S. dollar. However, fear that further negotiations could prove a slog still lingered and weighed on investor sentiment. China's blue-chip CSI 300 Index was little changed at midday while the Shanghai Composite Index added less than 0.1%. In Hong Kong, the Hang Seng China Enterprises Index lost 1.8% and the benchmark Hang Seng Index weakened 1.7%, retreating from a six-week high. The Hang Seng Tech Index tumbled 3%. The trade deal exceeded market expectations but investors were confused and worried what changes might come after the "temporary peace", Jefferies analysts said in a client note. "Institutional investors are becoming more cautious" and odds for policy support in the coming months may drop following the unexpectedly positive trade outcome, they said. U.S. Treasury Secretary Scott Bessent, speaking after talks with Chinese officials in Geneva, said on Monday the sides had agreed on a 90-day pause on tit-for-tat trade action. The U.S. will cut extra tariffs imposed in April on Chinese imports to 30% from 145% and Chinese duties on U.S. imports will fall to 10% from 125%, the sides said on Monday. On Tuesday, the energy sector advanced 0.7% and the banking sub-index climbed 1.2%, leading onshore markets higher. The strategically important rare earths sector - not mentioned in the talks - slipped 1%. The consumer electronics sector lost 0.4%, giving up earlier gains on tariff relief. Chinese stocks have recovered from a sell-off last month triggered by U.S. President Donald Trump's punitive tariff measures on his so-called Liberation Day on April 2. The blue-chip CSI300 Index is now trading 0.2% above that day. "We have been adding to China over the past months on the view that in the long term the current level of tariffs would be significantly reduced," said Kamil Dimmich, partner and portfolio manager at North of South Capital EM fund. "Markets have been fairly quick to price in the anticipated 'normalization', so we are no longer in a rush to add but remain happy with our exposures in China. Most likely there will be further ups and downs over the coming weeks and months so there may be better times to add." - Reuters
The Sun
13-05-2025
- Business
- The Sun
China stocks flat, Hong Kong retreats as tariff optimism fades
HONG KONG: Chinese stock prices were little changed on Tuesday whereas those in Hong Kong fell, as initial euphoria over a Sino-U.S. trade truce involving the reduction and delay of tariffs gave way to caution. An agreement between U.S. and Chinese officials after weekend talks in Geneva led to a rally in global markets and the U.S. dollar. However, fear that further negotiations could prove a slog still lingered and weighed on investor sentiment. China's blue-chip CSI 300 Index was little changed at midday while the Shanghai Composite Index added less than 0.1%. In Hong Kong, the Hang Seng China Enterprises Index lost 1.8% and the benchmark Hang Seng Index weakened 1.7%, retreating from a six-week high. The Hang Seng Tech Index tumbled 3%. The trade deal exceeded market expectations but investors were confused and worried what changes might come after the 'temporary peace', Jefferies analysts said in a client note. 'Institutional investors are becoming more cautious' and odds for policy support in the coming months may drop following the unexpectedly positive trade outcome, they said. U.S. Treasury Secretary Scott Bessent, speaking after talks with Chinese officials in Geneva, said on Monday the sides had agreed on a 90-day pause on tit-for-tat trade action. The U.S. will cut extra tariffs imposed in April on Chinese imports to 30% from 145% and Chinese duties on U.S. imports will fall to 10% from 125%, the sides said on Monday. On Tuesday, the energy sector advanced 0.7% and the banking sub-index climbed 1.2%, leading onshore markets higher. The strategically important rare earths sector - not mentioned in the talks - slipped 1%. The consumer electronics sector lost 0.4%, giving up earlier gains on tariff relief. Chinese stocks have recovered from a sell-off last month triggered by U.S. President Donald Trump's punitive tariff measures on his so-called Liberation Day on April 2. The blue-chip CSI300 Index is now trading 0.2% above that day. 'We have been adding to China over the past months on the view that in the long term the current level of tariffs would be significantly reduced,' said Kamil Dimmich, partner and portfolio manager at North of South Capital EM fund. 'Markets have been fairly quick to price in the anticipated 'normalization', so we are no longer in a rush to add but remain happy with our exposures in China. Most likely there will be further ups and downs over the coming weeks and months so there may be better times to add.'
The Sun
13-05-2025
- Business
- The Sun
China stocks flat, Hong Kong drops after trade truce
HONG KONG: Chinese stock prices were little changed on Tuesday whereas those in Hong Kong fell, as initial euphoria over a Sino-U.S. trade truce involving the reduction and delay of tariffs gave way to caution. An agreement between U.S. and Chinese officials after weekend talks in Geneva led to a rally in global markets and the U.S. dollar. However, fear that further negotiations could prove a slog still lingered and weighed on investor sentiment. China's blue-chip CSI 300 Index was little changed at midday while the Shanghai Composite Index added less than 0.1%. In Hong Kong, the Hang Seng China Enterprises Index lost 1.8% and the benchmark Hang Seng Index weakened 1.7%, retreating from a six-week high. The Hang Seng Tech Index tumbled 3%. The trade deal exceeded market expectations but investors were confused and worried what changes might come after the 'temporary peace', Jefferies analysts said in a client note. 'Institutional investors are becoming more cautious' and odds for policy support in the coming months may drop following the unexpectedly positive trade outcome, they said. U.S. Treasury Secretary Scott Bessent, speaking after talks with Chinese officials in Geneva, said on Monday the sides had agreed on a 90-day pause on tit-for-tat trade action. The U.S. will cut extra tariffs imposed in April on Chinese imports to 30% from 145% and Chinese duties on U.S. imports will fall to 10% from 125%, the sides said on Monday. On Tuesday, the energy sector advanced 0.7% and the banking sub-index climbed 1.2%, leading onshore markets higher. The strategically important rare earths sector - not mentioned in the talks - slipped 1%. The consumer electronics sector lost 0.4%, giving up earlier gains on tariff relief. Chinese stocks have recovered from a sell-off last month triggered by U.S. President Donald Trump's punitive tariff measures on his so-called Liberation Day on April 2. The blue-chip CSI300 Index is now trading 0.2% above that day. 'We have been adding to China over the past months on the view that in the long term the current level of tariffs would be significantly reduced,' said Kamil Dimmich, partner and portfolio manager at North of South Capital EM fund. 'Markets have been fairly quick to price in the anticipated 'normalization', so we are no longer in a rush to add but remain happy with our exposures in China. Most likely there will be further ups and downs over the coming weeks and months so there may be better times to add.'
Business Recorder
13-05-2025
- Business
- Business Recorder
China stocks flat, Hong Kong retreats as tariff optimism fades
HONG KONG: China stocks were flat on Tuesday, while Hong Kong shares pulled back, as initial euphoria over a US-China trade agreement to delay and slash tariffs gave way to growing caution over the lengthy negotiations ahead. The deal inked between US and Chinese officials after weekend talks in Geneva surpassed market expectations and led to a strong rally in global markets and the dollar overnight. However, fears that further negotiations could prove a long slog still linger and weighed on investor sentiment. China's blue-chip CSI 300 Index gained less than 0.1% and the Shanghai Composite Index added 0.2% in early morning trade. In Hong Kong, the Hang Seng China Enterprises Index lost 1.1%, while the benchmark Hang Seng Index weakened 1% to retreat from a six-week high. 'It might be just the beginning of the inevitable collision of the two largest economies. After enjoying a rebound, markets perhaps need to ponder the medium to long term risk,' Ting Lu, chief China economist at Nomura, said in a note. US Treasury Secretary Scott Bessent, speaking after talks with Chinese officials in Geneva, said on Monday the two sides had agreed on a 90-day pause on their tit-for-tat measures. The US will cut extra tariffs it imposed in April on Chinese imports to 30% from 145% and Chinese duties on US imports will fall to 10% from 125%, the two sides said on Monday. The consumer electronics sector added 0.3% on tariff relief. The energy sector advanced 0.8% and the banking sub-index climbed 0.7%, leading onshore markets higher. The strategically important rare-earths sector, which was not mentioned in the trade talks, slipped 0.4%. Chinese stock rally on US-China trade deal Still, China stocks have fully recovered from the sharp sell-off last month, which was triggered by US President Donald Trump's punitive tariff measures on 'Liberation Day'. The blue-chip CSI300 Index is now trading 0.3% above its April 2 level - the day Trump announced reciprocal tariffs. 'We have been adding to China over the past months on the view that in the long term the current level of tariffs would be significantly reduced,' said Kamil Dimmich, partner and portfolio manager at North of South Capital EM fund. 'Markets have been fairly quick to price in the anticipated 'normalization', so we are no longer in a rush to add but remain happy with our exposures in China. Most likely there will be further ups and downs over the coming weeks and months so there may be better times to add.'
