News

Shanghai Composite Falls for 4th Day
The Shanghai Composite Index shed 20 points or 0.6% to finish at 3,361 on Wednesday, declining for the fourth straight session as the sell-off related to the regulatory clampdown continued. Still, it was the smallest drop as a Chinese state-owned securities newspaper said that there was no systemic risk in the recent sell-off and that the country's macroeconomy is still in a steady rebound stage, and short-term fluctuations do not change the long-term positive outlook for A-shares. Meantime, the Institute of International Finance estimated that China’s equity markets suffered outflows of $600 million Tuesday after bleeding $2 billion on Monday. On the economic outlook, the IMF slashed China's growth projections to 8.1% after the government scaled back spending. Investors stayed cautious as they awaited the Fed's policy statement at the close of its two-day meeting later today.
Published on 2021-07-28

The SHANGHAI Index fell 0.55%
China Stock Market dropped 19 points. Losses were led by Avic Aviation Engine (-6.70%), Zijin Mining Group (-5.36%) and Zhonghang Heibao (-4.45%). Offsetting the fall, top gainers were Yonyou Soft (2.78%), Sanan Optoelectron (2.27%) and China Merchants Bank (2.23%).
Published on 2021-07-28

China Shanghai Composite Falls for 4th Straight Session
The Shanghai Composite Index dropped 8 points or 0.2% to a 4-month low of 3,373 in early trade on Wednesday, declining for the fourth straight session and after a pull-back in US stocks, amid deepening worries about the impact of a recent tightening in government regulations in China. The Institute of International Finance estimated that China’s equity markets suffered outflows of $600 million Tuesday after bleeding $2 billion on Monday. Traders moved away from riskier assets after the IMF Tuesday cut this year's economic growth forecast for emerging Asia, amid a spike in COVID-19 cases from new variants and slow vaccinations, with the outlook for China being slashed to 8.1% after the government scaled back spending. Investors were also cautious as they awaited the Fed's policy statement at the close of its two-day meeting later today. Shares of industrials led the losses, followed by utilities and energy.
Published on 2021-07-28

Shanghai Composite Sinks to Near 4-Month Low
The Shanghai Composite Index plunged 86 points or 2.5% to finish at a near 4-month low of 3,381 on Tuesday, retreating for the third session in a row, amid mounting worries over more policy changes following Beijing's regulatory crackdowns in some sectors. China announced Friday that all institutions offering tutoring on the school curriculum will be registered as non-profit organizations, while the market regulator reportedly would bar Tencent from exclusive music copyright deals. On the property market, the PBoC has ordered lenders in Shanghai to raise the rate of mortgage loans for first-time homebuyers. In local data, profits earned by China's industrial firms rose 66.9% yoy in H1, after an 83.4% surge in the prior period, on stable recovery momentum.
Published on 2021-07-27

The SHANGHAI Index decreased 2.44%
China Stock Market decreased 85 points. Losses were driven by Jiangsu Hengrui Me. (-7.97%), Sanan Optoelectron (-6.17%) and Qingdao Haier (-5.85%).
Published on 2021-07-27

China Shanghai Composite Remains Under Pressure
The Shanghai Composite Index fell 14 points or 0.4% to a near 2-1/2-month low of 3,454 in early trade on Tuesday, retreating for the third session in a row, amid persistent worries over government tighter regulations. Beijing on Friday announced that all institutions in China offering tutoring on the school curriculum will be registered as non-profit organizations. Meantime, China's market regulator said that it would bar Tencent from exclusive music copyright agreements, and fined the company for unfair market practices. On the property market, the PBoC has ordered lenders in Shanghai to raise the rate of mortgage loans for first-time homebuyers. Traders paid little attention to news that US stocks ended in record territory, ahead a busy week of economic data, earnings reports, and a Fed policy meeting Wednesday. In local data, profits earned by China's industrial firms rose 66.9% yoy in H1, after an 83.4% surge in the prior period, amid stable recovery momentum.
Published on 2021-07-27

China Stocks Plunge to 2-1/2-Month Low at Close
The Shanghai Composite Index plunged 83 points or 2.3% to end a near 2-1/2-month low of 3,467 on Monday, falling for the second straight session, amid mounting worries over tighter government rules. Beijing on Friday announced that all institutions in China offering tutoring on the school curriculum will be registered as non-profit organizations, and no new licenses will be granted. Meantime, China's Tencent Holdings was ordered by regulators to end exclusive contracts with music copyright holders within 30 days. News that Beijing reportedly is stepping up curbs on financing to local government financing vehicles to mitigate risks from hidden debt also made traders move away from riskier assets. On the COVID-19 side, the mainland saw 76 new infections Sunday, up from 32 a day earlier. Market participants now await the release of the first estimate of Q2 US GDP later in the week, along with a monetary policy decision by the Fed on Wednesday.
Published on 2021-07-26

Stocks in China Hit 10-week Low
SHANGHAI decreased to a 10-week low of 3441, amid mounting worries over the impact of Chinese government regulations on the education and property sectors, after Beijing barred for-profit tutoring in core school subjects. On the COVID-19 side, the mainland saw 76 new infections Sunday, up from 32 a day earlier. In the US, top health expert Anthony Fauci warned of a virus outbreak among the unvaccinated.
Published on 2021-07-26

China Shanghai Composite Sinks to Near 2-Month Low
The Shanghai Composite Index tumbled 44 points or 1.2% to a near two-month low of 3,506 in early trade on Monday, falling for the second straight session, after Beijing on Friday announced that all institutions in China offering tutoring on the school curriculum will be registered as non-profit organizations, and no new licences will be granted. The news triggered a massive sell-off Friday in the shares of companies including US-listed TAL Education Group and Gaotu Techedu. Meantime, China's Tencent Holdings was ordered by regulators to end exclusive contracts with music copyright holders within 30 days. Traders were also nervous as China reportedly was stepping up curbs on financing to local government financing vehicles to mitigate risks from hidden debt. On the COVID-19 side, the mainland saw 76 new infections Sunday, up from 32 a day earlier. In the US, top health expert Anthony Fauci warned of a virus outbreak among the unvaccinated.
Published on 2021-07-26

China Shares End Lower but Post Weekly Gains
The Shanghai Composite Index lost 24 points or 0.7% to close at 3,550 on Friday after closing at a three-week high in the prior session, as traders were downbeat after reports that the floods drenching central China are threatening supply chains for goods. Risk appetite was also dragged down by news that US initial jobless claims unexpectedly rose to a two-month high in the latest week; while the Chicago Fed National Activity Index fell in June. On the policy front, the PBoC reportedly will keep land and home prices stable as property lending slowed following efforts to pressure banks supporting small businesses. Regarding the pandemic, China's eastern province of Jiangsu found 12 new COVID-19 cases Thursday, taking the total tally to 23, in its first local outbreak since the pandemic began last year. For the week, however, the index was up 0.3%, on optimism that fiscal and monetary stimulus will continue to support the economic recovery.
Published on 2021-07-23

The SHANGHAI Index fell 0.68%
China Stock Market dropped 24 points. Losses were led by Fuyao Glass Indu (-3.49%), Qingdao Haier (-3.19%) and Guangzhou Baiy (-3.03%). Offsetting the fall, top gainers were Metallurgical (10.06%), Power Con (7.88%) and Great Wall Motor Co Ltd (6.19%).
Published on 2021-07-23

Shanghai Composite Trades Lower
The Shanghai Composite Index shed 15 points or 0.4% to 3,560 in early trade on Friday after closing at a three-week high in the prior session, as traders booked profits. News that US initial jobless claims unexpectedly rose to a two-month high in the latest week also dented sentiment, along with reports that the Chicago Fed National Activity Index fell in June, with its three-month moving average also declining. The sentiment was also rattled by reports that the floods drenching central China and submerging swathes of a major economic and transport hub are threatening supply chains for goods. On the policy front, the PBoC reportedly will keep land and home prices stable as property lending slowed following efforts to pressure banks supporting small businesses. Regarding the pandemic, Beijing Thursday rejected a WHO's plan for the 2nd phase of an investigation into the origin of COVID-19, saying China's position that some data could not be completely shared due to privacy concerns.
Published on 2021-07-23

China Equities Finish at 3-Week High
The Shanghai Composite Index gained 12 points or 03% to close at a three-week high of 3,575 on Thursday, rising for the second session in a row, lifted by state media reports that China will continue to open up its financial sector and improve rules for foreign banks and insurance firms entering the market. Traders were also upbeat after Wall Street extended a rally overnight, with market participants shrugging off concerns over the spread of the Delta variant and its impact on the global economy. Locally, China's Nanjing city has started mass COVID-19 testing of its 9.3 million population and suspended a subway line as the city faces the latest local virus cluster, according to Reuters. Meanwhile, the Chinese drug regulator is set to give the green light for the first foreign-made mRNA vaccine, Comirnaty. In business news, China Evergrande, the country’s most indebted developer, said in a statement today it has solved legal disputes with a local lender, China Guangfa Bank.
Published on 2021-07-22

China Shanghai Composite Extends Gains
The Shanghai Composite Index added 6 points or 0.2% to 3,568 in early trade on Thursday, hovering at over one-week high and advancing for the second consecutive session, after Wall Street extended a rally overnight, with traders shrugging off concerns over the spread of the Delta variant and its impact on the global economy. Locally, health authorities said that 1.4 billion doses of virus vaccines had been administered as of Tuesday in China, while the drug regulator is set to give the green light for the first foreign-made mRNA vaccine, Comirnaty. Risk appetite was also lifted by state media reports that China will continue to open up its financial sector and improve rules for foreign banks and insurance firms entering the market. On the corporate front, China Evergrande, the country’s most indebted developer, said in a statement today it has solved legal disputes with a local lender, China Guangfa Bank. Gainers were mainly seen for basic materials, energy, and financials.
Published on 2021-07-22

China Stocks Close at Near 1-Week High
The Shanghai Composite Index rose 26 points or 0.7% to finish at a near one-week high of 3,563 on Wednesday after closing slightly lower in the prior session, as traders cheered reports that Wall Street rebounded overnight from a multi-day losing streak, amid a string of upbeat earnings reports and revived economic optimism. Locally, China said Tuesday that accusations made by the US and its allies that Beijing has conducted a global cyber hacking campaign were unwarranted. In recent data, the PBoC left its benchmark interest rates for corporate and household loans steady for the 15th straight month at its July fixing, with the one-year loan prime rate at 3.85%, while the five-year at 4.65%. On the pandemic side, China logged 22 new COVID-19 cases in the mainland on Tuesday versus 65 a day earlier. Meantime, over 17.6 million people in Beijing, about 90.6% of the city's adult population, had been fully vaccinated as of Tuesday noon, local authorities said.
Published on 2021-07-21

The SHANGHAI Index rose 0.74%
China Stock Market rose 26 points. Leading the gains are Inner Mongolia BaoTou Steel (10.23%), Great Wall Motor Co Ltd (10.00%) and Yonyou Soft (7.42%). Top losers were China Everbright (-5.21%), Shanghai Pudong (-4.40%) and China Coal (-2.82%).
Published on 2021-07-21

China Shanghai Composite Trades Markedly Higher
The Shanghai Composite Index gained 23 points or 0.6% to 3,559 in early trade on Wednesday after closing slightly lower in the prior session, as traders cheered reports that Wall Street rebounded overnight from a multi-day losing streak, amid a string of upbeat earnings reports and revived economic optimism. Locally, China said on Tuesday that accusations made by the US and its allies that Beijing has conducted a global cyber hacking campaign were unwarranted. In recent data, the PBoC left its benchmark interest rates for corporate and household loans steady for the 15th straight month at its July fixing, with the one-year loan prime rate at 3.85%, while the five-year at 4.65%. On the pandemic side, over 17.6 million people in Beijing, about 90.6% of the city's adult population, had been fully vaccinated against COVID-19 as of Tuesday noon, local authorities said. Gainers were mainly led by consumer staples, technology, and basic materials.
Published on 2021-07-21

China Shares Down Slightly at Close
The Shanghai Composite Index fell 2 points or less than 0.1% to finish at 3,537 on Tuesday, tapering its noticeable losses in the early session, as traders shifted their attention to President Joe Biden's remarks Monday that an increase in prices was expected to be temporary, but he understood that unchecked inflation over the longer term would pose a challenge to the economy. The leader added he told Fed Chair Powell recently that the Fed was independent and should take whatever necessary to support the recovery. On the pandemic side, China Tuesday saw the highest daily tally of new confirmed COVID-19 cases since January, due to a surge in imported infections in southwestern Yunnan province. In recent data, the PBoC left its benchmark interest rates for corporate and household loans steady for the 15th straight month at its July fixing, with the one-year loan prime rate at 3.85%, while the five-year at 4.65%.
Published on 2021-07-20

China Shanghai Composite Trades at Near 1-Month Low
The Shanghai Composite Index shed 27 points or 0.8% to a near one-month low of 3,512 in early deals on Tuesday after closing nearly flat in the prior session, after resurgent pandemic worries sent the Dow Jones sank to its lowest since October 2020 while the S&P and the Nasdaq suffered their largest one-day percentage drop since mid-May. Meantime, China Tuesday saw the highest daily tally of new confirmed COVID-19 cases since January, due to a surge in imported infections in southwestern Yunnan province. Traders paid little attention to news that President Joe Biden Monday has told Fed Chair Powell recently that the Fed was independent and should take whatever necessary to support the recovery. On the policy front, the PBoC left its benchmark interest rates for corporate and household loans steady for the 15th straight month at its July fixing, with the one-year loan prime rate at 3.85%, while the five-year at 4.65%. Among top losers were basic materials, energy, and consumer staples.
Published on 2021-07-20

China Stocks Close Flat
The Shanghai Composite Index ended almost flat at 3539 on Monday after falling to a near two-week low in the early session, following reports that China's state planner in June has approved seven fixed-asset investment projects worth CNY 38.9 billion. Meantime, an official at the National Development and Reform Commission said that the Chinese government will adopt effective and timely measures in response to new issues in the economic recovery. Traders continued to follow reports that Beijing will crack down on the hoarding and speculation of commodities, in a move to tame price volatility seen in recent months. In the US, Wall Street finished lower on Friday, as investors continued worrying about rising inflation and surging coronavirus cases. Market participants now keep their eyes on the PBoC's decision over loan prime year for one year and five years on Tuesday.
Published on 2021-07-19