Latest news with #ZhiweiZhang
South China Morning Post
3 days ago
- Business
- South China Morning Post
China's factory activity contracts for second month in row as US trade tensions persist
China's manufacturing activity contracted in May for a second month, an official survey showed on Saturday, fuelling expectations for more stimulus to support the economy amid a protracted trade war with the United States. The official purchasing managers' index (PMI) improved slightly to 49.5 in May from 49.0 in April but stayed below the benchmark of 50 separating growth from contraction, in line with a median forecast of 49.5 in a Reuters poll. On Friday, US President Donald Trump accused China of violating a two-way deal to roll back tariffs and unveiled a doubling of worldwide steel and aluminium tariffs to 50 per cent, once again rattling international trade. 'Recent developments between China and the United States suggest bilateral relations are not improving,' said Zhiwei Zhang, chief economist at Pinpoint Asset Management. 'Firms in China and the United States with exposure to international trade have to run their business under persistently high uncertainty. It will weigh on the growth outlook in both countries.' The new orders sub-index rose to 49.8 in May from 49.2 in April, while the new export orders sub-index rose to 47.5 from 44.7. Some firms reported a noticeable rebound in trade with the United States, with improvements in both imports and exports, according to Zhao Qinghe, senior statistician at the National Bureau of Statistics.
Asharq Al-Awsat
3 days ago
- Business
- Asharq Al-Awsat
China's Manufacturing Activity Contracts Amid Trade Tension
China's manufacturing activity contracted in May for a second month, an official survey showed on Saturday, fuelling expectations for more stimulus to support the economy amid a protracted trade war with the United States. The official purchasing managers' index (PMI) improved slightly to 49.5 in May from 49.0 in April but stayed below the 50-mark separating growth from contraction, in line with a median forecast of 49.5 in a Reuters poll. On Friday, US President Donald Trump accused China of violating a two-way deal to roll back tariffs and unveiled a doubling of worldwide steel and aluminium tariffs to 50%, once again rattling international trade. "Recent developments between China and the United States suggest bilateral relations are not improving," said Zhiwei Zhang, chief economist at Pinpoint Asset Management. "Firms in China and the United States with exposure to international trade have to run their business under persistently high uncertainty. It will weigh on the growth outlook in both countries." The new orders sub-index rose to 49.8 in May from 49.2 in April, while the new export orders sub-index rose to 47.5 from 44.7. Some firms reported a noticeable rebound in trade with the United States, with improvements in both imports and exports, said senior NBS statistician Zhao Qinghe. The non-manufacturing PMI, which includes services and construction, fell to 50.3 from 50.4, staying above the 50-mark separating growth from contraction. Analysts expect Beijing to deliver more monetary and fiscal stimulus over the coming months to underpin growth and insulate the economy from the tariffs. Interest rate cuts and a major liquidity injection were among easing steps unveiled by the central bank this month. Beijing and Washington have agreed to a 90-day pause during which both would cut import tariffs, raising hopes of easing tension, but investors worry negotiations will be slow amid persistent global economic risks. Trump's decision to single out China in his global trade war has stirred major worries about an economy that has been reliant on an export-led recovery to drive momentum in the face of weak domestic demand and deflationary pressures. On Monday, rating agency Moody's maintained its negative outlook on China, citing unease over tensions with major trade partners could have a lasting impact on its credit profile. But it acknowledged that government policy had tackled its previous concerns about the health of state-owned firms and local government debt that prompted a downgrade in late 2023. China's economy expanded faster than expected in the first quarter, and the government has maintained a growth target of about 5% this year, but analysts fear US tariffs could drive momentum sharply lower. Exports beat forecasts in April, buoyed by demand for materials from overseas manufacturers who rushed out goods to make the most of President Trump's 90-day tariff pause.
Business Times
3 days ago
- Business
- Business Times
China's manufacturing activity contracts amid trade tension
[BEIJING] China's manufacturing activity contracted in May for a second month, an official survey showed on Saturday (May 31), fuelling expectations for more stimulus to support the economy amid a protracted trade war with the United States. The official purchasing managers' index (PMI) improved slightly to 49.5 in May from 49.0 in April but stayed below the 50-mark separating growth from contraction, in line with a median forecast of 49.5 in a Reuters poll. On Friday, US President Donald Trump accused China of violating a two-way deal to roll back tariffs and unveiled a doubling of worldwide steel and aluminium tariffs to 50 per cent, once again rattling international trade. 'Recent developments between China and the United States suggest bilateral relations are not improving,' said Zhiwei Zhang, chief economist at Pinpoint Asset Management. 'Firms in China and the United States with exposure to international trade have to run their business under persistently high uncertainty. It will weigh on the growth outlook in both countries.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The new orders sub-index rose to 49.8 in May from 49.2 in April, while the new export orders sub-index rose to 47.5 from 44.7. Some firms reported a noticeable rebound in trade with the United States, with improvements in both imports and exports, said senior NBS statistician Zhao Qinghe. The non-manufacturing PMI, which includes services and construction, fell to 50.3 from 50.4, staying above the 50-mark separating growth from contraction. Analysts expect Beijing to deliver more monetary and fiscal stimulus over the coming months to underpin growth and insulate the economy from the tariffs. Interest rate cuts and a major liquidity injection were among easing steps unveiled by the central bank this month. Beijing and Washington have agreed to a 90-day pause during which both would cut import tariffs, raising hopes of easing tension, but investors worry negotiations will be slow amid persistent global economic risks. Trump's decision to single out China in his global trade war has stirred major worries about an economy that has been reliant on an export-led recovery to drive momentum in the face of weak domestic demand and deflationary pressures. On Monday, rating agency Moody's maintained its negative outlook on China, citing unease over tensions with major trade partners could have a lasting impact on its credit profile. But it acknowledged that government policy had tackled its previous concerns about the health of state-owned firms and local government debt that prompted a downgrade in late 2023. China's economy expanded faster than expected in the first quarter, and the government has maintained a growth target of about 5 per cent this year, but analysts fear U.S. tariffs could drive momentum sharply lower. Exports beat forecasts in April, buoyed by demand for materials from overseas manufacturers who rushed out goods to make the most of President Trump's 90-day tariff pause. REUTERS
Business Recorder
20-05-2025
- Business
- Business Recorder
China, HK stocks flat as soft data offsets tariff truce lift
SHANGHAI: China and Hong Kong stocks ended roughly flat on Monday as weak data on China industrial and retail sales highlighted ongoing economic challenges, although the Sino-US tariff reprieve continued to lift shares of port operators. China's blue-chip CSI300 Index dipped 0.3%, while the Shanghai Composite Index was barely changed. Hong Kong's benchmark Hang Seng was little moved. China and Hong Kong markets have recovered ground lost since Donald Trump's tariff announcement in early April, after Beijing and Washington later agreed a 90-day tariff pause last week. But the rally appears to be losing steam. Official data showed on Monday that growth in China's industrial output and retail sales slowed in April, curbing risk appetite. Guosheng Securities cautioned investors against chasing stocks 'before concrete evidence points to a better-than-expected economy.' 'Fluctuation within a wide range remains our base case scenario,' the brokerage wrote. But shares of Chinese port operators continued to surge, as investors doubled down on bets that the 90-day tariff pause will spur a rush in shipments. Lianyungang Port, Ningbo Port and Zhuhai Port all hit their daily upward limit of 10%. Shares of other major port operators such as China Merchants Port Group and Shanghai International Port also rose sharply. 'Exporters may continue to boost production and delivery in the next few months in case tariffs are hiked again down the road,' said Zhiwei Zhang, president at Pinpoint Asset Management.
Business Recorder
19-05-2025
- Business
- Business Recorder
China, Hong Kong stocks sag on soft data despite tariff truce lift
SHANGHAI: China and Hong Kong stocks sagged on Monday, as weak local data on industrial and retail sales highlighted ongoing economic challenges, although the Sino-US tariff reprieve continued to lift shares of port operators. China, HK stocks dip with earnings China's blue-chip CSI300 Index dropped 0.4% by the lunch break, while the Shanghai Composite Index lost 0.1%. Hong Kong benchmark Hang Seng traded 0.5% lower. China and Hong Kong markets have recovered ground lost since Donald Trump's 'Liberation Day' tariffs in early April, as Beijing and Washington announced a 90-day tariff pause last week. But the rally appears to be losing steam. Official data showed on Monday that growth in China's industrial output and retail sales slowed in April, curbing risk appetite. Guosheng Securities cautioned investors against chasing stocks 'before concrete evidence points to a better-than-expected economy.' 'Fluctuation within a wide range remains our base case scenario,' the brokerage wrote. ** But shares of Chinese port operators continued to surge, as investors doubled down on bets that the 90-day tariff pause will spur a rush in shipment. Lianyungang Port, Ningbo Port and Zhuhai Port all hit their daily upward limit of 10%. Shares of other major port operators such as China Merchants Port Group and Shanghai International Port also rose sharply. 'Exporters may continue to boost production and delivery in the next few months in case tariffs are hiked again down the road,' said Zhiwei Zhang, president, Pinpoint Asset Management. China Securities Co analysts said the tariff reprieve may 'spur a shipment rush that leads to a burst of businesses' for port operators. Hong Kong-listed shares of Midea Group and ZTO Express jumped after the Hang Seng Indexes Co said they would be added to the Hang Seng Index early next month.
