Latest news with #CSI300
Business Recorder
4 hours ago
- Business
- Business Recorder
China stocks extend 5-week rally ahead of trade talks
HONG KONG: China stocks extended their five-week rally on Monday, with the rare earth sector climbing to a three-year high ahead of crucial trade talks with the United States, while insurers gained following an industry policy change that boosted sentiment. The Shanghai Composite index reversed earlier losses to close up 0.1% at 3,597.94, hovering near the highest level in 3-1/2 years. The blue-chip CSI300 index added 0.2%. The rare earth sector climbed 1.5% to a fresh three-year high, lifting onshore markets higher, as top US and Chinese economic officials prepare to resume talks in Stockholm later in the day. The discussions will likely extend their trade truce by three months, preventing the implementation of higher tariffs, according to analysts. The insurance sector added nearly 3% to rank among the best performers onshore, after the industry body cut the reference rate for life insurance products. 'Investor concerns on US-China trade frictions appear to have eased,' Kinger Lau, chief China equity strategist at Goldman Sachs, said in a note. 'A potential US-China trade deal could be a market-clearing event for Chinese stocks.' The bank raised its 12-month MSCI China index target to 90 from 85, representing an 11% potential rise, due to improved US-China relations, reduced regulatory risks, stronger yuan and supportive liquidity conditions. Weighing on the markets on Monday, commodity-related companies pared last week's rally which was spurred by Beijing's campaign to tackle overcapacity. Indexes tracking steel and coal sectors lost 1.4% and 2.9%, respectively. Hong Kong's benchmark Hang Seng Index rose 0.7% to 25,562.13 and continued to hover near the highest since November 2021.
Business Recorder
a day ago
- Business
- Business Recorder
China stocks cool after 5-week rally as investors eye US trade talk progress
HONG KONG: China stocks pulled back from a five-week rally on Monday, as investors looked beyond Beijing's efforts to curb competition and overcapacity, instead focussing on U.S. trade talk progress, while Hong Kong stocks rose, driven by insurers' rally. At the midday break, the Shanghai Composite index fell 0.2% to 3,587.69 points after climbing for five straight weeks to a 3-1/2-year high. China's blue-chip CSI300 index shed 0.2%. Commodity-related companies pared last week's rally spurred by Beijing's 'anti-involution' campaign, with indexes tracking steel and coal sectors losing 1.7% and 2.9%, respectively, to weigh on the markets. Beijing launched an 'anti-involution' campaign this month to tackle 'disorderly price competition,' or overcapacity, amid persistent deflationary pressure at home and trade curbs abroad. Insurers added 2.4% to rank among the best performers after the industry body cut the reference rate for life insurance products. Top U.S. and Chinese economic officials will resume talks in Stockholm later in the day, likely extending their trade truce by three months and preventing the implementation of higher tariffs. CITIC Securities says the recent onshore bullish run is mostly liquidity-driven, and whether it can become a longer-lasting bull market will depend on actual improvements in economic fundamentals. Hong Kong's benchmark Hang Seng Index rose 0.4% to 25,490.45 and continued to hover near the highest since November 2021. Insurers AIA, Ping An and China Life gained between 3.2% and 4.5%. However, the tech index lost 0.6%.
Business Recorder
3 days ago
- Business
- Business Recorder
China stocks pause rally as investors eye Politburo meeting
HONG KONG: China stocks dipped on Friday, pausing their rally as investors locked in gains ahead of a Politburo meeting expected to set economic policy for the rest of the year, though markets still registered a fifth straight weekly rise. The Shanghai Composite index fell 0.3% to 3,593.66, slipping from a 3-1/2-year high. China's blue-chip CSI300 index lost 0.5%. Liquor distillers dropped 2% and consumer staples slid 1.7%, leading declines onshore. Offsetting some losses, the AI sector jumped 2.2% and semiconductor sector climbed 1.9%. Despite the day's pullback, the Shanghai Composite index has gained 1.7% so far this week to log its fifth straight weekly gain - its longest winning streak since the start of a rally that began in February 2024. Beijing's latest efforts to curb excessive competition and overcapacity, and incremental signs of improving US-China trade relations lifted sentiment. Analysts at CLSA said institutional investors' overall risk appetite has improved significantly this month, though some remain unconvinced about a structural bull run and see more sector-specific opportunities. Hong Kong's benchmark Hang Seng Index weakened 1.1% to 25,388.35 after closing at its highest since November 2021 on Thursday. The Hang Seng Tech Index led declines, losing 1.2% on the day. Market attention will be squarely on the Politburo meeting due later this month, given that it will likely shape economic policy for the rest of the year.
Mint
4 days ago
- Business
- Mint
China stocks pause rally as investors eye Politburo meeting, but extend weekly gains streak
China stocks dipped on Friday, pausing their rally as investors locked in gains ahead of a Politburo meeting expected to set economic policy for the rest of the year, though markets still registered a fifth straight weekly rise. ** The Shanghai Composite index fell 0.3% to 3,593.66, slipping from a 3-1/2-year high. China's blue-chip CSI300 index lost 0.5%. ** Liquor distillers dropped 2% and consumer staples slid 1.7%, leading declines onshore. Offsetting some losses, the AI sector jumped 2.2% and semiconductor sector climbed 1.9%. ** Despite the day's pullback, the Shanghai Composite index has gained 1.7% so far this week to log its fifth straight weekly gain - its longest winning streak since the start of a rally that began in February 2024. ** Beijing's latest efforts to curb excessive competition and overcapacity, and incremental signs of improving U.S.-China trade relations lifted sentiment. ** Analysts at CLSA said institutional investors' overall risk appetite has improved significantly this month, though some remain unconvinced about a structural bull run and see more sector-specific opportunities. ** Hong Kong's benchmark Hang Seng Index weakened 1.1% to 25,388.35 after closing at its highest since November 2021 on Thursday. ** The Hang Seng Tech Index led declines, losing 1.2% on the day. ** Market attention will be squarely on the Politburo meeting due later this month, given that it will likely shape economic policy for the rest of the year. ** Chinese policymakers, concerned about local growth amid an ongoing trade war with the U.S., are unlikely to offer a big gun stimulus this time until there's more clarity on what's needed, said Keiko Kondo, Schroders' head of multi-assets for Asia, who is neutral on China equities. This article was generated from an automated news agency feed without modifications to text.
Business Recorder
4 days ago
- Business
- Business Recorder
China stocks pause rally ahead of next week's Politburo meeting, eye 5th weekly gain
HONG KONG: China stocks edged lower on Friday, pausing their recent rally, as investors locked in gains ahead of a key Politburo meeting, though the market remained on track for a fifth straight weekly gain. At the midday break, the Shanghai Composite index fell 0.3% to 3,593.38, after logging the highest close since January 2022 on Thursday. China's blue-chip CSI300 index lost 0.5%. Liquor distiller, consumer staples and rare earth sectors led the declines, with losses ranging from 0.9% to 1.6%. Despite the day's pullback, the Shanghai Composite index has gained 1.7% so far this week and is set to rise for the fifth straight week - its longest winning streak since the rally that began in February 2024. Beijing's latest efforts to curb excessive competition and overcapacity, and incremental signs of improving U.S.-China trade relations lifted sentiment. Analysts at CLSA said institutional investors' overall risk appetite has improved significantly this month, though some remain unconvinced about a structural bull run and see more sector-specific opportunities. Hong Kong's benchmark Hang Seng Index weakened 1.1% to 25,383.07, after hitting its highest since November 2021 on Thursday. The Hang Seng Tech Index led declines, losing 1.7% on the day. Market attention would be squarely on the Politburo meeting next week, given that it will likely shape economic policy for the rest of the year.
