News

Chinese Shares Slump 2.1%
The Shanghai Composite fell 75.97 points or 2.12% to 3509.08 on Friday, trading near 4-week lows while gaining 1% for the month after a sell-off in US government bonds amid concerns central banks will unwind accommodative monetary policies that have fed an unprecedented rally in global equities. Locally, fears over policy tightening and high valuations in stock markets lingered even as the PBoC said that it would refrain from sudden shifts in order to provide stability. Further weighing on sentiment, Katherine Tai, Biden’s top trade nominee, backed tariffs as a legitimate tool to counter China’s state-driven economic model. Meantime, the Hang Seng Index plummeted 997.54 points or 3.32% to monthly lows of 29076.63, trimming the gauge’s advance this month to 3.7% and marking the fifth monthly gain.
Published on 2021-02-26

China Stocks Slump 2%
The Shanghai Composite Index tumbled 76 points or 2.1% to a near three-week low of 3,509 on Friday at around 02:15 PM Shanghai time, after soaring bond yields and heavy selling in the tech sector triggered a broad sell-off on Wall Street overnight. The 10-year US Treasury hit a one-year high of 1.614% Thursday, above the S&P 500 dividend yield of 1.5%. Meantime, the White House said that President Joe Biden was disappointed in the ruling by the Senate parliamentarian that the chamber cannot include his proposed minimum wage in a $1.9 trillion COVID-19 bill. Locally, fears over policy tightening and high valuations in stock markets lingered even as the PBoC said that it would refrain from sudden shifts in order to provide stability. Further weighing sentiment, Katherine Tai, Biden’s top trade nominee, backed tariffs as a legitimate tool to counter China’s state-driven economic model. All major sectors moved lower, led by basic industrials, real estate, and consumer staples.
Published on 2021-02-26

China Shanghai Composite Tumbles 1.6%
The Shanghai Composite Index slumped 55 points or 1.6% to 3,528 in early deals on Friday after rising bond yields triggered a broad sell-off on Wall Street overnight. The 10-year US Treasury hit a one-year high of 1.614% on Thursday, above the S&P 500 dividend yield of 1.5%. Meantime, White House on Thursday said that President Joe Biden was disappointed in the ruling by the Senate parliamentarian that the chamber cannot include his proposed minimum wage in a $1.9 trillion COVID-19 bill. Globally, the Dutch parliament passed a non-binding motion saying the treatment of the Uighur Muslim minority in China amounts to genocide. In local news, China has approved two more vaccines for public use, raising the number of domestically produced vaccines to four. On the business front, Chinese retailer Suning.com said shareholders plan to sell 20 to 25% of the company to unnamed buyers. All major sectors moved lower, led by basic materials, energy, and industrials.
Published on 2021-02-26

Chinese Shares Snap 4 Sessions of Decline
The Shanghai Composite added 20.97 points or 0.59% to 3585.05 on Thursday snapping 4 sessions of consecutive declines and tracking US equities higher after US Fed Chair Powell reiterated that interest rates will remain at near-zero levels and the Fed will continue its asset purchases at the current rate until “substantial further progress” has been made toward its goals of maximum employment and price stability. Meantime, Beijing said that Washington has undermined regional stability after a US warship sailed through the Taiwan Strait Wednesday. On the pandemic front, the US FDA indicated that Johnson & Johnson's COVID-19 vaccine is safe and highly effective. The Hang Seng Index added 384.86 points or 1.3% to 30103.1. Recently, Hong Kong’s government increased its stamp duty on equity transactions to 0.13% from 0.1% on the city’s stock exchange for the first time in almost two decades to fund a widening budget deficit.
Published on 2021-02-25

China Equities Pare Gains
The Shanghai Composite Index added 23 points or 0.7% to 3,587 on Thursday at around 02:30 PM Shanghai time, trimming its early gains, after Beijing said that Washington has undermined regional stability after a US warship sailed through the Taiwan Strait Wednesday. Sentiment was supported by the promise that the Fed will leave interest rates at a low level for a long time. Meanwhile, a new stimulus to help boost the US economy is imminent, with the House of Representatives is likely to vote for the aid by Friday. On the pandemic front, the US FDA indicated that Johnson & Johnson's COVID-19 vaccine is safe and highly effective. Gainers were mainly seen for industrials, technology, and basic materials. Property shares also gained after some research notes by local brokerages said the valuation of the real estate sector was at a historically low level.
Published on 2021-02-25

China Shanghai Composite Soars 1%
The Shanghai Composite Index climbed 36 points or 1% to 3,600 in early trade on Thursday, mirroring US stocks that rallied overnight after Federal Reserve Chair Jerome Powell’s comments calmed inflation worries. Investors were keen to open new positions following reports that another round of stimulus to help boost the US economy is imminent, with the House of Representatives is likely to vote for the aid by Friday. Meanwhile, Beijing is reportedly ready to enhance exchanges with the US on the trade and economic fronts. Further adding the bullish tone, the US FDA indicated that Johnson & Johnson's COVID-19 vaccine is safe and highly effective. Meantime, CanSino Bio, a unit of China's Sinopharm has applied for public use of their vaccines in China, which if granted would mean China has four locally developed approved vaccines. Gainers were broad-based, led by real estate, financials, and energy.
Published on 2021-02-25

Chinese Shares Sink 2%
The Shanghai Composite dropped 72.28 points or 1.99% to 3564.08 on Wednesday, extending declines for a third consecutive session as escalating worries over policy tightening in China continued to weigh on sectors with almost record-high valuations. Further denting sentiment, Hong Kong’s government increased its stamp duty on equity transactions to 0.13% from 0.1% on the city’s stock exchange for the first time in almost two decades to fund a widening budget deficit. In the US, Fed Chair Jerome Powell said in a testimony to the Senate Banking Committee on Tuesday that the economic recovery remains uneven and the path ahead is highly uncertain while pledging to hold rates at the current level near zero until the economy reaches maximum employment and inflation has risen to 2%. On the pandemic front, the mainland saw 12 new COVID-19 cases on Tuesday, up from 10 a day earlier. The Hang Seng Index plunged 914 points or 3% to 29718.
Published on 2021-02-24

China Stocks Plunge 2.4%
The Shanghai Composite Index tumbled 88 points or 2.4% to a near one-month low of 3,548 in afternoon trade on Wednesday, as escalating worries over policy tightening in China continued to weigh on sectors with almost record-high valuations. Sentiment was also dragged down by reports that Hong Kong's government will increase stamp duty to 0.13% from 0.1% for stock trading. Meantime, US Federal Reserve in a testimony to the Senate Banking Committee on Tuesday said that economic recovery remains uneven and the path ahead is highly uncertain. On the pandemic front, the mainland saw 12 new COVID-19 cases on Tuesday, up from 10 a day earlier. In business news, Reuters reported that Chinese social media Weibo has appointed Goldman Sachs, Credit Suisse, and CLSA to work on its planned Hong Kong secondary listing in H2 2021. All major sectors were in the red, led by consumer non-cyclicals, basic materials, and healthcare.
Published on 2021-02-24

China Shanghai Composite Trades Lower
The Shanghai Composite Index fell 30 points or 0.8% to 3,606 in early deals on Wednesday, amid concerns about rising bond yields and potentially higher inflation. Traders were also cautious after US Federal Reserve in a testimony to the Senate Banking Committee on Tuesday said that economic recovery remains uneven and the path ahead is highly uncertain while reaffirming that the monetary policy would remain accommodative. Reports that Beijing has tried to intimidate Hong Kong residents living in Germany since two years ago, according to a letter from the German interior ministry to a lawmaker also weighed on sentiment. On the pandemic front, the mainland saw 12 new COVID-19 cases on Tuesday, up from 10 a day earlier. In business news, Reuters reported that Chinese social media Weibo has appointed Goldman Sachs, Credit Suisse, and CLSA to work on its planned Hong Kong secondary listing in H2 2021. The energy sector declined the most, followed by consumer staples and industrials.
Published on 2021-02-24

Chinese Shares Fall for 2nd Session
The Shanghai Composite closed 6.1 points or 0.17% down to 3636 on Tuesday, falling for the second session from a 5-year high reached last week as optimism on economic recovery from the COVID-19 pandemic was not enough to offset worries over policy tightening. China’s central bank said it would prioritise policy stability and avoid making sudden shifts while providing the support needed for a continued economic recovery in 2021. On the coronavirus front, China reported 10 new virus cases Monday, down from 11 cases a day earlier. In local data, new home prices rose by 3.9% yoy in January, after a 3.8% gain in December. Meantime, the Hang Seng Index gained 360.26 points or 1.19% to 30680.09.
Published on 2021-02-23

China Shares Rise 0.5% in Afternoon Deals
The Shanghai Composite Index advanced 18 points or 0.5% to 3,661 on Tuesday at around 01:45 PM Shanghai time, as traders were upbeat following reports that the $1.9 trillion COVID-19 relief bill in the US may be passed in the House of Representatives later this week. News that the People Bank's of China would provide support for a continued economic recovery in 2021 also boosted sentiment, along with reports that the central bank would prioritize policy stability and avoid making sudden shifts. On the data front, new home prices in China rose by 3.9% yoy in January, after a 3.8% gain in December. On a monthly basis, new home prices went up 0.3%, the most in four months. Regarding the pandemic, China reported 10 new virus cases Monday, down from 11 cases a day earlier. Meantime, over 43 million virus vaccine doses from China’s Sinopharm have been used both in the country and overseas. Among top performers were the financial sector, healthcare, energy, and technology.
Published on 2021-02-23

China Shanghai Composite Adds 0.3%
The Shanghai Composite Index rose 12 points or 0.3% to 3,654 in early deals on Tuesday, following reports that the $1.9 trillion COVID-19 relief bill in the US may be passed in the House of Representatives later this week. Sentiment was also supported by news that over 43 million virus vaccine doses from China’s state-backed Sinopharm have been used, including over 34 million administered in the country and the rest overseas. In business news, Schroders said on Monday it had received Chinese regulatory permission to form a majority-owned wealth management venture with a unit of Bank of Communications (BOCOM), the country’s fifth-biggest lender. On the data front, new home prices in China rose by 3.9% yoy in January, after a 3.8% gain in December. On a monthly basis, new home prices went up 0.3%, the most in four months. Gainers were mainly seen for utilities, industrials, and consumer non-cyclicals.
Published on 2021-02-23

Chinese Shares Slip
The Shanghai Composite fell 53.72 points or 1.45% to 3642.44 on Monday as China's bank regulator tightened requirements on the internet loan business of commercial banks. Banks reportedly must contribute funds to issue internet loans with a partner, and the proportion of capital from the partner in a loan should not be less than 30%. Meantime, concerns about bubble risk in domestic markets emerged after reports that China will study the feasibility of allowing individuals to invest in securities and insurance products abroad, with the amount will be within an annual quota of $50,000 per person. In other news, Chinese Foreign Minister Wang Yi called on the new US administration to stop the “suppression” of Chinese technology companies. Investors now await Federal Reserve Chair Jerome Powell’s Congressional testimony Tuesday. In Hong Kong, the Hang Seng Index lost 317.15 points or 1.03% to 30327.58.
Published on 2021-02-22

China Equities Turn Lower in Afternoon Trade
The Shanghai Composite Index fell 10 points or 0.3% to 3,687 in afternoon deals on Monday, erasing its early gains, after China's bank regulator tightened requirements on the internet loan business of commercial banks. Banks reportedly must contribute funds to issue internet loans with a partner, and the proportion of capital from the partner in a loan should not be less than 30%. Meantime, concerns about bubble risk in domestic markets emerged after reports that China will study the feasibility of allowing individuals to invest in securities and insurance products abroad, with the amount will be within an annual quota of $50,000 per person. News that a dozen Chinese fighter aircraft and bombers carried out drills close to Taiwan-controlled islands in the disputed South China Sea, also rattled sentiment. Investors now await Federal Reserve Chair Jerome Powell’s Congressional testimony Tuesday. Consumer non-cyclicals, healthcare, and technology led the losses.
Published on 2021-02-22

China Shanghai Composite Advances 0.5%
The Shanghai Composite Index rose 19 points or 0.5% to 3,715 in early deals on Monday, as market participants welcomed reports that index provider FTSE Russell will add 11 stocks from China’s STAR Market to its global benchmarks. Risk appetite was also buoyed by news that Beijing called on Washington to work with China to reopen dialogue between the two countries to restore a bilateral relationship damaged under the presidency of Donald Trump. In business news, China on Saturday tightened requirements on the internet loan business of commercial banks, with banks must jointly contribute funds to issue internet loans with a partner, and the proportion of capital from the partner in a loan should not be less than 30%. On the pandemic front, there were seven new cases on Saturday, compared with eight cases a day earlier. Basic materials led the gains, followed by energy, real estate, and utilities.
Published on 2021-02-22

Chinese Shares Close At 5-Year Highs
The Shanghai Composite added 20.81 points or 0.57% to 3696.17 on Friday, extending gains of 0.6% in the previous session and closing 0.13% higher for the week after local media reported that China saw a consumption surge during the weeklong Lunar New Year. Spending reportedly rose on tourism, retail, and dining and shopping. On the pandemic front, Beijing kicked off a massive COVID-19 vaccination drive on Thursday, estimating many districts to complete the campaign in May. In addition, central bank publication Financial News said in a commentary published that the PBoC has achieved its goal of maintaining the stability of money market interest rates around the Lunar New Year holiday with measured, targeted open market operations. In Hong Kong, the Hang Seng Index added 20.97 points or 0.07% to 30616.24, falling 1.01% weekly.
Published on 2021-02-19

China Shares Turn Higher in Afternoon Deals
The Shanghai Composite Index rose 7 points or 0.2% to 3,682 on Friday at around 01:46 PM Shanghai time, reversing its early losses, after local media reported that China saw a consumption surge during the weeklong Lunar New Year. Spending reportedly rose on tourism, retail, and dining and shopping. News that the People’s Bank of China has achieved its goal of maintaining the stability of money market interest rates with measured, targeted open market operations, also lifted sentiment. In global news, Treasury Secretary Janet Yellen said Thursday that recent signs of improvement in the US economy are no reason to scale back the administration’s $1.9 trillion relief plan. On the pandemic front, Beijing kicked off a massive COVID-19 vaccination drive on Thursday, estimating many districts to complete the campaign in May. Gainers were mainly seen for utilities, real estate, and industrials.
Published on 2021-02-19

China Shanghai Composite Plunged 0.9%
The Shanghai tumbled 34 points or 0.9% to 3,640 in early trade on Friday, tracking US stocks that retreated overnight as an unexpected rise in weekly US jobless claims highlighted a fragile recovery in the labor market. News that the US will keep tariffs imposed on Chinese goods by the former Trump administration in place for now also dented sentiment, along with reports that the US House of Representative relaunched a bill that would ban imports from China’s Xinjiang region unless it is certified they are not produced with forced labor. Further weighing sentiment, China’s air passenger traffic plunged 45.16% yoy over Lunar New Year. On the pandemic front, Beijing kicked off a massive COVID-19 vaccination drive on Thursday, estimating many districts to complete the campaign in May. Meantime, Hong Kong has formally approved China's Sinovac vaccine for emergency use, with the rollout starting from February 26th. Consumer non-cyclicals, healthcare, and basic materials led the decline.
Published on 2021-02-19

Chinese Shares Close Higher
The Shanghai Composite added 22.04 points or 0.6% to 3677.13 on Thursday as markets reopened following a week-long holiday, proving upbeat about an acceleration in global economic growth. In China, retail and catering sales jumped in the Lunar New Year holiday week, with revenues rising almost one-third from 2020, amid strong orders from staycationing consumers. Investors also took notice of strong US retail sales, an ongoing push for further US stimulus, and signs that the Federal Reserve will maintain its accommodative stance. Meantime, the Hang Seng Index lost 426.9 points or 1.37% to 30658.04, falling from 32-month highs hit in the previous session.
Published on 2021-02-18

China Equities Jump 0.9%
The Shanghai Composite Index was up 34 points or 0.9% to 3,689 on Thursday at around 02:00 PM Shanghai time, as traders were upbeat about an acceleration in global economic growth following strong US retail sales, ongoing push for further US stimulus, and signs that the Federal Reserve will maintain its accommodative stance. In China, retail and catering sales jumped in the Lunar New Year holiday week, with revenues rising almost one-third from 2020, amid strong orders from staycationing consumers. On the business side, China's Baidu reported quarterly revenue which was above Wall Street expectations on Wednesday. On the pandemic front, the mainland saw 11 new virus cases today. Nearly all major sectors gained, with energy, basic materials, and financials being top performers.
Published on 2021-02-18