China stocks see gains amid property market pressures
Chinese stocks, including Alibaba, JD.com, and Baidu, rebounded as investors bought the dip, while property manager Country Garden faced liquidity pressures.
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Posted 8/30/2023, 4:45:46 PM
yahoo.com
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Stocks rebounded on Monday, with the Nasdaq Composite leading the way, breaking its four-day losing streak and pushing Wall Street into positive territory, while bond yields continued to rise.
Asian stocks, particularly Chinese markets, may find some relief after Wall Street's resilience in the face of rising bond yields, though economic data from China remains underwhelming and foreign investors continue to sell Chinese stocks.
Baidu's stock jumps as the tech giant surpasses analysts' earnings expectations, cutting through concerns over China's macroeconomic conditions.
Asian stock markets rebounded from an eight-day losing streak, supported by a recovery in Chinese shares, while benchmark Treasury yields reached a 16-year high on concerns of sustained high interest rates.
Fundstrat's head of research, Tom Lee, suggests that the August sell-off in stocks presents a great opportunity for investors to buy the dip before stocks resume their rally, despite near-term downside risks influenced by China's weakening economy and rising interest rates.
Hong Kong stocks rebounded as traders considered the recent market slump to be excessive, with Chinese tech leaders such as Alibaba, AIA, and NetEase leading the way.
U.S. stocks rebounded as Federal Reserve Chair Jerome Powell kept options open for more interest rate hikes, with the Nasdaq leading the gains and finishing the week up 2.2%.
China's leading e-commerce company, JD.com, has experienced a significant decline in its stock price due to investor concerns about the Chinese economic recovery and the property market debt crisis, despite positive second-quarter earnings and growth prospects.
Shares in Chinese property giant Evergrande collapsed as they resumed trading in Hong Kong after 17 months, while Asian markets advanced following Federal Reserve chief Jerome Powell's cautious approach to rate hikes and China's decision to cut the duty on trades.
Chinese stocks, including Alibaba and JD.com, experienced a rally after the government announced plans to reduce trading taxes and implement measures to boost capital markets.
China's stamp duty and margin cuts revive confidence in the Hong Kong stock market, leading to a rally in stocks such as HKEX, Alibaba, and BYD, while China Evergrande continues to struggle.
Shares of Chinese e-commerce giants Alibaba and JD.com surged after the Chinese government announced measures to boost the country's capital markets, including halving the stamp duty on securities transactions.
Chinese stocks rebounded briefly after Beijing implemented measures to halt the slide, but foreign investors used the opportunity to unload $1.1 billion of mainland Chinese equities, reflecting ongoing nervousness about holding capital in China.
Alibaba's stock is dropping due to China's struggling economy, but there are signs of resilience and hope for the future.
Chinese consumer spending has rebounded in certain sectors, but concerns persist over the property market and GDP growth falling below 5%, according to Shehzad Qazi, managing director of China Beige Book.
Hong Kong-listed property stocks surged after China's People's Bank of China eased borrowing rules and cut the reserve requirement ratio for foreign exchange deposits, leading the Hang Seng Index to be the top gainer in Asia, with real estate companies such as Evergrande, Logan Group, and Longfor Group experiencing a spike in shares, and Country Garden Holdings leading gains at 14.61% up.
Global stocks rise as a Chinese rebound, prompted by eased mortgage rules, boosts the country's struggling property sector. Goldman Sachs predicts more stimulus to come.
China's stock market rebound may be temporary as corporate earnings continue to decline and companies revise down their outlooks, causing concern for foreign funds and prompting Bank of America to urge caution.
Chinese property stocks and Japanese government bonds set the tone for global markets as the Hang Seng property index dropped to a fresh September low before rebounding on news that Country Garden won creditor support to delay onshore bond payments, while the Bank of Japan's comments about potential stimulus exit in 2023 pushed the local bond market, and the week ahead is marked by important policy meetings by the Bank of England, the Federal Reserve, and the ECB.
Chinese internet stocks, such as Alibaba (BABA), JD.com (JD), and Baidu (BIDU), have faced challenges this year due to the stalled Chinese economy, but their low valuations and AI capabilities present potential opportunities for investors. Despite their current struggles, analysts remain optimistic about the long-term prospects of these stocks, with JD.com expected to have the highest upside potential of over 80%.
Asian stocks dipped across the board as investors interpreted the US Federal Reserve's latest policy statements as signaling higher-for-longer interest rates.