Hong Kong exchange has room to grow as city marks 30 years of H- share listings
Hong Kong's stock market has benefited from China's rapid growth, with over 1,400 Chinese companies raising $1.05 trillion in the past 30 years.
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Posted 8/22/2023, 1:30:19 PM
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China's fiscal revenue increased by 11.5% in the first seven months of 2023, but the growth rate was slower than the previous six months, indicating a potential decline in the economy's momentum.
China's previous economic model of investing in infrastructure and manufacturing led to a period of rapid growth and global export success.
Hong Kong stocks have entered a bear market, dropping 21 percent from their peak, as investor concerns about China's real estate sector and economic growth continue to escalate.
China's stock market has experienced a bearish performance recently, with the benchmark stock index reaching a 9-month low, and there are concerns about the longer-term equilibrium interest rate highlighted by Fed Chair Powell's remarks at the upcoming Jackson Hole Economic Symposium.
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.
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.
International investors are selling off Chinese stocks at a rapid rate, with $10.7 billion worth of holdings sold in 13 consecutive days, the longest streak since 2016, due to concerns over slowing growth and the potential impact of the country's property sector on the financial system.
China's tourism industry is expected to grow faster than its GDP as Chinese consumers shift their spending from property to travel experiences, according to the CFO of Tongcheng Travel.
Asian markets will be influenced by economic indicators, policy steps, and diplomatic signals from China, as well as reacting to the Jackson Hole speeches, purchasing managers index reports, GDP data, and inflation figures throughout the week, with investors desperate for signs of economic improvement as China's industrial profits continue to slump and authorities take measures to stimulate the capital market.
Chinese stocks rally as Beijing takes steps to boost the market.
Most Asian stocks rose on Monday, led by Chinese shares, as China implemented measures to support its stock markets and investors looked ahead to key economic indicators from China and the US.
China's economic slowdown is causing alarm worldwide, with countries experiencing a slump in trade, falling commodity prices, and a decrease in Chinese demand for goods and services, while global investors are pulling billions of dollars from China's stock markets and cutting their targets for Chinese equities.
China's stock market indexes experienced a brief bounce of over 5% before giving up most of the gains, following new government measures to reduce trading costs and boost stocks, raising questions about the severity of China's economic problems and whether they can be resolved through stimulus measures.
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.
Chinese stocks initially surged on Monday after the government implemented measures to boost investor confidence, but most of the gains were lost by the end of the session due to concerns about the country's economic slowdown and the foreign outflow of funds.
Hong Kong stocks rise on speculations of fresh capital market measures and expectations of banks cutting mortgage rates, while Chinese developers and Xiaomi contribute to the market gains.
Asia-Pacific markets rise as investors anticipate China's August factory activity data, with the country's manufacturing sector expected to contract for the fifth consecutive month, while US stocks gain due to positive economic data and revised GDP growth figures.
Chinese stocks surged as the government implemented additional measures to support the property sector, signaling a determination to boost the economy by addressing issues in the struggling housing market.
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.
Hong Kong's ultra-wealthy population decreased by 23% in 2022, while New York and Singapore saw growth, according to a report by Altrata, with China's Covid-19 restrictions, economic slowdown, geopolitical issues, and equities slump cited as reasons for the decline. However, Altrata predicts that the global super-rich population will rebound by 2027, reaching 528,100 individuals with a net worth of $60.3 trillion.
China's economic growth has slowed but has not collapsed, and while there are concerns about financial risks and a potential property crisis, there are also bright spots such as the growth of the new energy and technology sectors that could boost the economy.
Stock prices in Asia were mostly higher as investors awaited updates on U.S. inflation and China's economic data, while concerns about rising oil prices and possible higher interest rates weighed on markets.
Chinese stocks experienced the largest monthly outflow in a year, with foreign investors withdrawing $15.5 billion from emerging market portfolios in August, driven by concerns over China's economic growth.
Investors sold a record $12 billion worth of Chinese stocks in August amid concerns about the state of the Chinese economy, while many investors are flocking to US equities, according to JPMorgan and a survey by Bank of America.
Investors have pulled £10 billion from Chinese stocks as China's economy continues to decline, with declining exports and struggling real estate contributing to the turmoil.
Chinese economic data showing strength in consumer spending and manufacturing activity boosted Asian markets, with Hong Kong's Hang Seng Index rising 0.8% and Tokyo's Nikkei 225 surging 1.1%, despite concerns about a slowdown in China's economy.
Three Chinese firms, including AI software company Beijing Fourth Paradigm, are aiming to raise up to $280 million in Hong Kong initial public offerings, with Fourth Paradigm seeking to raise up to $144 million by selling 18.4 million shares.
A significant outflow of capital from Chinese stocks and bonds is reducing the market's influence in global portfolios and speeding up its decoupling from the rest of the globe, according to a report by the Times of India.
Hong Kong stocks plummet as the Federal Reserve's more hawkish stance and the yuan's continued weakness take a toll on the market.