Latest news with #PBoC
Mint
5 days ago
- Business
- Mint
Chinas yuan edges lower on dollar strength, weaker fixing
HONG KONG, - China's yuan weakened slightly against the U.S. dollar on Wednesday, as the central bank eased its fixing and the greenback held on to gains spurred by easing trade tensions and upbeat data. Prior to the market's opening, the People's Bank of China set the midpoint rate at 7.1894 per dollar, 18 pips weaker than the previous level. The midpoint rate is the level around which the yuan is allowed to trade a maximum of 2% up or down. That comes after the central bank set a slightly weaker-than-expected midpoint fixing for two days in a row, which is seen by market players as a sign to slow the currency's appreciation. The yuan is up 1.0% against the dollar this month following a de-escalation in China-U.S. trade tensions, while the greenback weakened on concerns over the U.S. fiscal outlook. The move indicates that the PBoC is phasing out its one-way CNY fixing support, said Ken Cheung, chief Asian FX strategist at Mizuho Bank. "Notably, CNH/CNY spot spread has turned negative since May 23, reflecting a modest RMB appreciation bias is building up," he added. By 03:22 GMT, the yuan was 0.04% lower at 7.1985 to the dollar after trading in a range of 7.1910 to 7.2033. The offshore yuan traded at 7.1961 per dollar, down about 0.06% in Asian trade. Based on Wednesday's official guidance, the yuan is allowed to drop as far as 7.3332. Elsewhere, the Hong Kong dollar weakened past 7.84 per dollar for the first time since September 2023. The dollar's six-currency index was 0.3% higher at 99.79, building on Tuesday's rally, as upbeat economic data in the United States and easing trade frictions lifted sentiment. Key onshore vs offshore levels: * Overnight dollar/yuan swap onshore -6.00 pips vs. offshore -6.00 * Three-month SHIBOR 1.6 % vs. 3-month CNH HIBOR 1.7 % This article was generated from an automated news agency feed without modifications to text.
CNBC
07-05-2025
- Business
- CNBC
"Eat like a bird but poop like a cow" - China expert on FX carry trade
Louis-Vincent Gave, cofounder of Gavekal Research talks about how investors playing the carry trade in Taiwan lost two years worth of gains in 72 hours and how the latest steps by the PBoC could help prop up Chinese stocks.
RTHK
24-04-2025
- Business
- RTHK
China firmly supports free trade, says PBoC chief
China firmly supports free trade, says PBoC chief People's Bank of China governor Pan Gongsheng says unilateralism and protectionism 'offer no way out'. File photo: Courtesy of CCTV China's central bank chief Pan Gongsheng said the country will firmly support free-trade rules and the multilateral trading system. The remarks came as the People's Bank of China governor attended a meeting of G20 finance ministers and central bank governors in Washington on Wednesday local time, according to state broadcaster CCTV. Speaking at the event, Pan said unilateralism and protectionism "offer no way out" and are not in the interests of anyone. He also said China will adhere to its opening-up process and promote inclusive economic globalisation while maintaining global economic and financial stability. He called on countries to strengthen cooperation to prevent the global economy from degenerating into a situation in which "high frictions and low trust" prevail as economic fragmentation intensified, disrupting the global industrial and supply chains, triggering financial market turmoil and weakening the momentum of global growth.
Yahoo
26-03-2025
- Business
- Yahoo
Is JD.com (JD) The Best Chinese Stock to Buy According to Billionaires?
We recently published a list of the 10 Best Chinese Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Inc. (NASDAQ:JD) stands against the other Chinese stocks held by billionaires. The People's Bank of China's (PBoC) monetary easing and government stimulus have lifted the valuations of Chinese equities. A few months ago, many investors were expecting the U.S. economy to be in a better position and Chinese stocks were facing significant regulatory worries. However, the tables have turned with the Chinese economy expected to be in a better position compared to 2024. Things have taken a wild turn with the U.S. president imposing high tariffs and investors expecting an economic slowdown in the U.S. On the other hand, China's advancement in AI and its capabilities to grow its AI infrastructure have intensified since the launch of DeepSeek's R1 model. 'The U.S. has had a good period, and that's coming to an end because Trump's policies are very anti-economy. China has had a very bad period, but it looks as if it's starting to recover,' Richard Harris, CEO of Port Shelter Investment Management, told CNBC. Chinese government support for its technology sector has induced much optimism among investors. The Hang Seng Tech Index, which tracks some of the largest Chinese companies listed in Hong Kong, has soared over 21% year-to-date, as of March 25. At the same time, the NASDAQ 100 index, covering the U.S. tech stocks, has plunged over 3.70%. Whereas, the Shanghai Composite Index has risen over 3% compared to a drop of 1.70% in the S&P 500 index. 'Performance of the HSCEI/MSCI China in the past 17 months trended closely to the trajectory a decade ago, making us worry that we might be approaching some correction soon,' analysts at the Bank of America wrote in a report published on March 17. Harris believes that China's A shares have been quite depressed for some time compared to the U.S. stocks. With valuation improvements and optimism in the tech sector in China, it is a good time to explore Chinese stocks. A supply chain employee using the company's secure supply chain management software to update their customer's records. To compile our list of the best Chinese stocks to buy according to billionaires, we looked for the Chinese stocks widely held by billionaires. Data for the number of billionaire investors for each stock was taken from Insider Monkey's database, updated as of Q4 2024. Finally, the 10 best Chinese stocks to buy were ranked in ascending order based on the number of billionaires holding stakes in them. We have also mentioned the number of hedge funds that held these stocks as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). No. of Billionaire Investors: 18 Total Billionaire Stake: $1.82 Billion No. of Hedge Fund Holders: 78 Inc. (NASDAQ:JD) is a top Chinese e-commerce and supply chain company. It operates one of China's largest e-commerce platforms, competing with Alibaba and Pinduoduo. The company also offers logistics, digital solutions, and asset management services to businesses. With operations in logistics and controlling the supply chain, JD differentiates itself from its competitors through a focus on quality and a direct-sales model. JP Morgan analyst Andre Chang increased the price target on JD from $50 to $55, maintaining an Overweight rating on the shares. Following strong Q4 results, the analysts remain optimistic about the company's future earnings. Inc. (NASDAQ:JD) posted a revenue of $147.5 million in Q4 2024, up by 13.4% from a year ago, with full-year revenue up 6.8% to $158.8 billion. The company exceeded full-year revenue estimates by $3.36 billion. also surpassed the 2024 earnings estimate of $4.10, posting an EPS of $4.29 per share. Overall JD ranks 2nd on our list of the Chinese stocks to buy according to billionaires. While we acknowledge the potential of JD as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than JD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
24-02-2025
- Business
- Yahoo
Trump's China Order Interrupts Rally in Emerging-Market Stocks
(Bloomberg) -- Emerging-market stocks fell on Monday, after posting the longest streak of weekly gains since 2020, as President Donald Trump's latest executive order deepened investor concerns over the economic showdown between the US and China. Trump Targets $128 Billion California High-Speed Rail Project Trump Asserts Power Over NYC, Proclaims 'Long Live the King' Trump to Halt NY Congestion Pricing by Terminating Approval Airbnb Billionaire Offers Pre-Fab Homes for LA Fire Victims Sorry, Kids: Disney's New York Headquarters Is for Grown-Ups MSCI Inc.'s benchmark for EM equities dropped 0.7%, after a 10% rally in the past six weeks that was driven by bets that Chinese technology companies, especially Alibaba Group Holding Ltd., are making strides in artificial intelligence. That had taken the index's valuation to a four-month high, positioning it near highs that have sparked selloffs over the past two years. Over the weekend, Trump directed the Committee on Foreign Investment in the United States to restrict Chinese spending on technology, energy and other strategic US sectors, his administration's latest salvo against the world's second-largest economy. The administration also called on Mexican officials to place their own levies on Chinese imports and proposed fees on the use of commercial ships made in China. While the flurry of executive orders narrowed the negotiating room for China over trade tariffs, the country also faced more urgent pressures on the domestic front. Tightening liquidity is leading to a surge in money-market rates, a squeeze worsened by local governments' borrowing to replace off-balance sheet debt. Investors are fretting over signs that the People's Bank of China is pausing accommodative measures and authorities aren't following through on policy pledges. 'The primary reason for the recent selloff in Chinese bonds is the PBoC's passive bearish aggression, which refers to the lack of monetary easing despite tight liquidity,' Societe Generale strategist Kiyong Seong wrote in a note. 'It would be unreasonable for the PBoC to ignore a sustained selloff in Chinese bonds that exceeds the level at which the Politburo committed to adopting a 'moderately loose' monetary policy.' A gauge of Chinese technology stocks listed in Hong Kong fell 1.2%. Alibaba, Tencent Holdings and Taiwan Semiconductor Manufacturing Co. accounted for 61% of the MSCI Emerging Markets Index's losses Monday. The gauge was trading around 12.5 times the 12-month projected earnings of its members, the highest valuation since mid-October. In currency markets, the dollar's sluggish moves after three weeks of losses helped to steady emerging-market exchange rates. The South Korean won and Thai baht outperformed as 18 of the 31 most widely traded EM currencies moved higher. Senegal's sovereign dollar bonds posted some of the biggest losses among EM peers after Moody's Ratings lowered the country's credit rating to six levels below investment grade. Elsewhere, Saudi Arabia mandated banks for a potential sale of a green bond, with a seven-year security in euros. The kingdom also sought to sell a 12-year bond. The date of the issues wasn't announced. In eastern Europe, Hungary proposed an income-tax exemption for mothers, Portfolio website reported, citing Economy Minister Marton Nagy. Prime Minister Viktor Orban will provide further details about the move in a speech to parliament. Hungary's 10-year government bond yields eased for a third day. Meet Seven of America's Top Personal Finance Influencers Walmart Wants to Be Something for Everyone in a Divided America Can Dr. Phil's Streaming Makeover Find an Audience in the MAGA Era? How Med Spas Conquered America India's Most Reliable Retirement Plan: Selling Grandma's Jewelry ©2025 Bloomberg L.P. Sign in to access your portfolio
