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RTHK
a day ago
- Business
- RTHK
HSI falls while Shanghai stocks hit decade high
HSI falls while Shanghai stocks hit decade high The Hang Seng Index gave up gains earlier in the day to end down 93 points, or 0.37 percent, at 25,176. File photo: RTHK Mainland stocks closed at their highest level since 2015 on Monday, extending a months-long rally driven by easing trade tensions and abundant liquidity while pushing market capitalization to a record peak. In Hong Kong, the property sector weighed on stocks as the benchmark Hang Seng Index ended down 93 points, or 0.37 percent, at 25,176, giving up earlier gains. The Hang Seng China Enterprises Index dipped 0.06 percent to end at 9,033 while the Hang Seng Tech Index rose 0.65 percent to close at 5,579. The electric vehicle sector jumped 1.9 percent. The benchmark Shanghai Composite Index rose 0.85 percent to 3,728, its strongest close since August 2015, while the Shenzhen Component Index closed 1.73 percent higher at 11,835. The CSI 300 Index also climbed by 0.9 percent to a 10-month peak. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 2.84 percent to close at 2,606. The Shanghai benchmark has now advanced some 22 percent since the low struck in early April, buoyed by the extension of the US-China trade truce, Beijing's crackdown on excessive competition, and a rotation of funds from bonds into equities, which brokers say has flooded the market with liquidity. The total market capitalisation of over 5,400 China-listed companies has risen above 100 trillion yuan for the first time, reflecting both price appreciation and a surge in listings over the past decade. Winnie Wu, Bank of America's chief China equity analyst, said positive developments on the geopolitical front and clearer policy direction from Beijing have all helped compress the equity risk premium and trigger a re-rating, despite the rally running against fundamentals odds. "There are renewed hopes on domestic retail flows," she wrote in a note to clients. In a sign of heightened investor activity, onshore turnover reached nearly 2.8 trillion yuan on Monday, the highest since October when Beijing's sweeping stimulus measures triggered a sharp rally. Hao Hong, chief investment officer at Lotus Asset Management, said the market may face near-term resistance due to profit-taking pressure, but added that many remain hopeful the bull run can extend despite headwinds. Leading the rally on Monday onshore, the rare-earth sector surged 5.3 percent to a fresh high since December 2021. The AI sector jumped 3.8 percent and the information technology sector rose 2.5 percent. (Reuters/Xinhua)


RTHK
09-07-2025
- Business
- RTHK
HK stocks slip amid China factory deflation worries
HK stocks slip amid China factory deflation worries The Hang Seng Index ended down 255.75 points, or 1.06 percent, at 23,892.32 on Wednesday. File photo: RTHK Mainland stocks ended lower on Wednesday, wiping out all intraday gains, due to worries over deepening factory deflation as firms cut prices amid weak demand. In Hong Kong, the benchmark Hang Seng Index ended the day at 23,892.32, down 255.75 points or 1.06 percent. The Hang Seng China Enterprises index fell 1.28 percent to 8,597.27. Up north, the benchmark Shanghai Composite Index closed down 0.13 percent at 3,493.05 while the Shenzhen Component Index closed 0.06 percent lower at 10,581.80. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 0.16 percent to close at 2,184.67. China's producer deflation deepened to its worst level in almost two years in June as the economy grapples with uncertainty over a global trade war and subdued demand at home, piling pressure on policymakers to roll out more support measures. "Combined with the persistently negative GDP deflator, deflation remains a concern," said Lynn Song, chief economist for Greater China at ING. Citi analysts said in a note that they remain "cautious on the inflation trajectory while waiting for more policy actions". They added that further guidance from the upcoming Chinese Communist Party politburo meeting and action plans from the State Council and state planner could be worth monitoring. On the trade front, US President Donald Trump said said he would impose a 50 percent tariff on imported copper and soon introduce long-threatened levies on semiconductors and pharmaceuticals, broadening his trade war that has rattled markets worldwide. Trump also said trade talks have been going well with the European Union and China, though he added he is only days away from sending a tariff letter to the former. "We have had a really good relationship with China lately, and we're getting along with them very well. They've been very fair on our trade deal, honestly," Trump said, adding that he has been speaking regularly with President Xi Jinping. "It may boost market sentiment in the short term," said Deng Lijun, analyst, Huajin Securities. "The new wave of tariff increases did not involve China, and the United States had lifted export restrictions to China for chip design software developers and ethane, and Sino-U.S. trade tensions have eased in the short term," Deng said, adding that risk appetite for A-shares may rebound once Beijing and Washington reach a tariff deal. Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.42 percent, while Japan's Nikkei index closed up 0.33 percent. (Reuters/Xinhua)