China - Market Direction 03 (Aug 16 - Dec 18)

Re: China - Market Direction 03 (Aug 16 - Dec 18)

Postby winston » Fri Jul 20, 2018 6:15 am

China’s stocks post longest losing streak in almost two months as yuan drops to one-year low

The yuan slides to lowest level in 12 months, falling to 6.7514 against the US dollar in onshore trading

Source: SCMP

https://www.scmp.com/business/china-bus ... two-months
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Re: China - Market Direction 03 (Aug 16 - Dec 18)

Postby winston » Mon Jul 23, 2018 9:58 pm

China state-backed funds sit on their hands during stock market slump

During the 2015 crisis, Beijing launched rescue funds, curbed short-selling activity, suspended share trading and orchestrated share buybacks, but still failed to stem savage market routs that roiled global markets.

Launched in July 2015 with total assets of 200 billion yuan ($29.5 billion) - or 40 billion yuan each - the funds’ assets exceeded 250 billion yuan last year but suddenly shrank two-thirds to a combined 74.1 billion in the first quarter, after massive government redemptions.

In addition to the mutual funds, China’s central government also holds stocks via less transparent entities, including the state margin lender, Central Huijin, and investment platforms grouped under the foreign exchange regulator.


Source: Reuters

https://www.reuters.com/article/us-chin ... KD1G6?il=0
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Re: China - Market Direction 03 (Aug 16 - Dec 18)

Postby winston » Mon Jul 30, 2018 9:23 pm

China Equity Bulls May Find Some Reassurance in These Charts

1. Surging buybacks
2. Favorable fund flows and
3. Low valuations
4. Widening Underperformance VS US Peers

The mainland market shed more than $1 trillion in value over the past two months.


UBS: “We see upside for both onshore and offshore markets in the second half.”

JPMorgan Asset Management: “The big correction is already behind us”.

CICC: Short interest is growing in Hong Kong and that could spell more downside ahead.

Noah Holdings: Shares may be more vulnerable and volatile to swings in foreign investor sentiment amid global uncertainty.



Source: Bloomberg

https://finance.yahoo.com/news/china-eq ... 52978.html
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Re: China - Market Direction 03 (Aug 16 - Dec 18)

Postby winston » Tue Jul 31, 2018 8:02 am

China relaxes foreign stock investment rules to boost A-share market

The proposed rules will include cutting lock-up periods and lowering financial requirements for foreigners

The lock-up period for strategic investments in A-share listed firms will be slashed to 12 months from the current three years.

Also proposed to lower the financial requirements for eligible foreign investors – foreign firm or its controller – to actually own US$50 million in assets, or to manage US$300 million or more in assets. The thresholds are now at US$100 million and US$500 million respectively.


Source: SCMP

https://www.scmp.com/business/banking-f ... oost-share
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Re: China - Market Direction 03 (Aug 16 - Dec 18)

Postby winston » Tue Jul 31, 2018 8:11 am

China stocks 'yet to bottom out'

by Avery Chen

The bottom for Chinese stock markets remains some way off though there are headwinds like debt, a drag from technology stocks and the[b] trade war with the United States.
[/b]
That is the reading from Mark Mobius, partner and co-founder of Mobius Capital Partners.

In Hong Kong, mainland property developer Country Garden (2007) was the biggest loser among blue chips, falling 7.47 percent to HK$12.1 after the announcement all projects have been suspended for safety checks.

The company reported last week that six people were killed in a month at construction sites.

The yuan dropped to a 13-month low and the offshore yuan fell to 6.822 against the US dollar, weighed by much weaker central bank fixing and negative expectations for the Chinese currency as Sino-US trade tensions worsen.

A report from DBS bank pointed out that the yuan's depreciation in June-July was more aggressive compared to the sell-off in 2015 to 2016, while market responses have been relatively subdued.

The yuan's sharp depreciation is seen as a response to the US dollar's global resurgence. The bank has recalibrated its forecast for the yuan to end 2018 at 6.90 because of US dollar strength.

Source: The Standard
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Re: China - Market Direction 03 (Aug 16 - Dec 18)

Postby winston » Fri Aug 03, 2018 10:59 am

China Stocks, Yuan Slide as Hopes for Politburo Boost Fizzle Out

August 1, 2018

Yuan trades near weakest on record against currency basket
Developers lead declines in Hong Kong as new curbs announced

“The policies released from the Politburo meeting overnight weren’t anything surprising,” said Steven Leung, executive director at Uob Kay Hian (Hong Kong) Ltd.

“The selling is mainly because of a lack of investor confidence. We need something more drastic to change the view of investors.”

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Chinese equities and the yuan extended losses Wednesday afternoon, gaining downward momentum as concern over possible higher U.S. tariffs overwhelmed optimism about Beijing’s pledge to support economic growth.

The CSI 300 Index of large mainland-listed companies slid 2 percent, its biggest loss in a month. The offshore-traded yuan fell 0.17 percent to 6.8170 per dollar as of 4:59 p.m., while the yuan neared the weakest on record against a trade-weighted basket of currencies. The Hang Seng Index dropped 0.9 percent, erasing a gain of 0.7 percent, and the yield on 10-year government bonds slid 1 basis point.

“The policies released from the Politburo meeting overnight weren’t anything surprising,” said Steven Leung, executive director at Uob Kay Hian (Hong Kong) Ltd. “The selling is mainly because of a lack of investor confidence. We need something more drastic to change the view of investors.”


A communique issued after a Tuesday evening meeting of China’s 25 most senior leaders said the campaign to reduce leverage would continue at a measured pace, while noting that the external environment had “significantly changed.”

Property developers continued to slide Wednesday, after the Politburo vowed to clamp down on home-price gains. The local government in Shenzhen also revealed new tightening measures.

“Don’t expect any aggressive liquidity easing and property loosening. The policy tuning is for China to solve challenges more flexibly, and the policy orientation has always been the same.”

Materials and industrial companies were among the best performing stocks earlier in the day, boosted by a Politburo call for more infrastructure investment.


Source: Bloomberg News

https://www.bloomberg.com/news/articles ... yptr=yahoo
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Re: China - Market Direction 03 (Aug 16 - Dec 18)

Postby winston » Tue Aug 07, 2018 6:02 am

China’s stock market bulls and bears are locking heads, leaving room for cautious investor optimism

Nicholas Spiro says despite the recent market turbulence, the divergence of views on Chinese stocks and the economy means the country’s equities could still be attractive

The rout in Chinese stocks – nearly US$2.3 trillion has been wiped off the value of the country’s shares since January (nearly half of this in the past two months).


The bullish case for Chinese stocks – both offshore and onshore – is based mainly on cheaper valuations due to the combination of this year’s steep fall in share prices and, for the time being, a robust earnings outlook.

China bulls also take comfort in the recent shift towards growth-supportive policies.


China bears warned that the current sell-off is worryingly reminiscent of the 2015 crisis, with the additional threat of a trade war. The renewed strains on China’s economy and markets, come at a time when the emerging market asset class as a whole is under pressure, creating dangerous feedback loops,


Source: SCMP

https://www.scmp.com/comment/insight-op ... re-locking
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Re: China - Market Direction 03 (Aug 16 - Dec 18)

Postby winston » Wed Aug 08, 2018 7:40 am

China market rises most in two years as pension funds get OK to invest in stocks

The mainland’s major indices gain more than 2pc; Hong Kong’s benchmark up 1.5pc

China's stock market rose the most in two years on Tuesday after the first batch of 14 pension target funds were approved by the China Securities Regulatory Commission.

The People’s Bank of China also decided last week to raise the reserve requirement ratio to 20 per cent from zero for financial institutions when they conduct onshore yuan forwards business on behalf of customers, making it more expensive to short the currency.


Source: SCMP

https://www.scmp.com/business/companies ... -ok-invest
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Re: China - Market Direction 03 (Aug 16 - Dec 18)

Postby winston » Fri Aug 10, 2018 7:49 am

China’s regulator quietly removes capital-sapping CDRs as it vows reforms to soothe frayed nerves

China’s stock market has lost US$2 trillion in value since the benchmark index fell 24 per cent from a January high

The regulator will commence by the end of 2018 a cross-border investment channel called the London Stock Connect, which will enable Chinese investors to trade in London-listed equities, and for UK investors to buy Chinese stocks.

The regulator will also support the inclusion of Chinese equities into the FTSE Russell global indexes, and press to increase the weightings of Chinese stocks in the MSCI benchmark.

Missing from the statement is any mention of Chinese depositary receipts (CDRs).




Source: SCMP

https://www.scmp.com/business/china-bus ... ng-cdrs-it
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Re: China - Market Direction 03 (Aug 16 - Dec 18)

Postby winston » Wed Aug 15, 2018 8:10 pm

Struggling Chinese stocks may cheer news of increased inclusion on a widely followed index

by Cheang Ming

MSCI will be proceeding with the second phase of partial Chinese mainland stock share inclusion in its Emerging Markets Index.

The move, mostly expected, could prove to be good news for Chinese stocks, which have been under pressure.

Any "foreign money coming in would be a help to stabilize the Chinese stock market" given the declines in the market, said Hao Hong, head of research at Bank of Communications International.

MSCI is adding an additional 2.5 percent of the market capitalization of the stocks included in the index.

Ten A shares will also be added as part of the review, taking the total number of A shares in the MSCI China Index to 236 and representing 0.75 percent of the MSCI Emerging Markets Index.


MSCI will also be making 13 additions to its China All Shares Index. Those companies included China Shenhua Energy, China United Network Communications and Hengli Petrochemical, as well as telecommunications equipment maker ZTE. The changes will be implemented at the end of August.


Source: CNBC

https://www.cnbc.com/2018/08/14/msci-a- ... yptr=yahoo
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