^HSI - HANG SENG INDEX
| Previous close | 26,339.16 |
| Open | 26,571.08 |
| Volume | 0 |
| Day's range | 25,911.74 - 26,782.62 |
| 52-week range | 21,139.26 - 29,174.92 |
| Avg. volume | 1,905,400,908 |
- Zacks
Bull Market is Back for Red Dragon: 3 Solid Buys
The rally comes after a major state-owned financial newspaper said that China requires a bull market to build strength, reviving memories of the bull run of 2015.
- Financial Times
Stock market rally stalls as investors hunt for safer assets
Stocks retreated across the world on Tuesday, ending a six-day global rally that had brought equities in the US within striking distance of positive territory for the year. The declines, which accompanied a spurt of buying of haven assets including US Treasuries and UK gilts, came as traders weighed flare-ups in coronavirus cases in several parts of the world. On Wall Street, the S&P 500 fell 1.1 per cent, with roughly four shares falling in the index for each stock that advanced.
- FX Empire
China Blue Chip Index Hits 5-year High; Australian Shares Tumble as Borders Close
The Australian stock market closed lower as state border closures sparked fear of a second wave that could damage the country’s economic rebound.
- Bloomberg
Hong Kong Stocks Enter Bull Market After $1.1 Trillion Rebound
(Bloomberg) -- Hong Kong stocks joined the rest of the world in bull market territory Monday, after a more than $1.1 trillion rebound.The Hang Seng Index jumped 3.8%, extending its rally from March’s low to 21%. Tencent Holdings Ltd. and Hong Kong Exchanges & Clearing Ltd. have contributed 42% of the benchmark’s gains during the period, according to data compiled by Bloomberg. Sino Biopharmaceutical Ltd., the gauge’s biggest gainer of 2020 as of June 30, and Tencent were the only two Hang Seng members to fall Monday while underperforming sectors in Hong Kong -- including autos, commodities and financials -- soared.Mainland investors have been buying record amounts of Hong Kong equities, while sentiment has been fueled by a heavy activity of initial public offerings and secondary listings of U.S.-listed Chinese companies, triggering inflows into new-economy shares and HKEX. Meanwhile, mainland stocks have surged to multiyear highs.Despite the recent jump, the Hang Seng Index needs to rise another 10% to reach pre-pandemic levels. Only nine of the gauge’s 50 stocks are higher for 2020.However, Jefferies predicts the index should reach 30,000 by year-end, thanks to factors including interest rates and no evidence of outflows despite the city’s economy being in a year-long recession. Hong Kong’s economy suffered its biggest-ever contraction in the first quarter, and the government expects the city’s economy to shrink between 4% and 7% in 2020.A few technical bullish signs are still flashing in the market. The Hang Seng is still trading near the lowest level versus the global peers since 2003, while it is about 50% cheaper than the S&P 500 on a price-to-earnings basis, the biggest discount since at least 2005.It took longer for Hong Kong stocks than others globally to climb out of the brutal virus-driven selloff, as political worries have been an additional overhang to the city’s stocks. Beijing last week implemented a law to enhance national security in response to months of protests.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- FX Empire
Asian Stocks Push Higher, Still Within Sideways Trend
Asian stocks and US futures are climbing, even as the number of coronavirus cases worldwide nears 11.4 million.
- Financial Times
Will EU talks improve the pound’s prospects?
Sterling will be back in investors’ sights on Monday, when UK and EU negotiators are scheduled to meet in London to hammer out an arrangement on their post-Brexit relations by the end of the month. After four days of talks last week, Michel Barnier, the EU’s chief negotiator, raised the prospect of a deal, and the pound responded. Unless the UK meets its self-imposed end-July deadline for a trade deal with the EU, it will drop out of the EU’s single market and customs union at the end of this year, having left the bloc in January.
- Bloomberg
Tech Tycoons Flood H.K. With $20 Billion of Stock Listings
(Bloomberg) -- China’s tycoons are flooding Hong Kong’s exchange with $20 billion worth of new listings.While the city’s rich are preparing for a worst-case scenario amid a controversial national-security law, major mainland billionaires are coming in. The latest to do so: William Ding of NetEase Inc. and JD.com Inc.’s Richard Liu, whose companies completed secondary listings there last month. They follow Jack Ma, whose Alibaba Group Holding Ltd. stock issuance in November was the city’s largest since 2010.Together, the three moguls’ firms have raised $20 billion from share sales in the former British colony, and that may be just the start of a new wave of listings by mainlanders.“Chinese billionaires’ tech companies are helping the capital market in Hong Kong for a pivotal change and secure its Asia financial hub status,” said Edward Au, managing director of the southern region at Deloitte China. “The city’s stock exchange is also trying to make it a more appealing destination for new-economy companies.”The national-security law that was approved on Tuesday is threatening to erode Hong Kong’s judicial independence from the mainland, a key part of the city’s appeal to international companies and investors. The U.S. has already started to make it harder to export sensitive American technology to Hong Kong, and the House of Representatives passed a bill imposing sanctions on banks that do business with Chinese officials involved in cracking down on pro-democracy protesters.While Chinese billionaires have myriad reasons for pursuing listings there -- including a less welcoming political environment in the U.S. -- their choice of the city over alternatives on the mainland may help ease concerns that the former British colony risks losing its status as a financial center.Chinese tech tycoons with companies trading in the city now have a combined net worth of $182 billion, more than the 10 richest people in Hong Kong, according to the Bloomberg Billionaires Index. For them, Hong Kong is becoming increasingly appealing as Chinese companies listed in the U.S. face growing scrutiny and potential delistings following an accounting scandal at Luckin Coffee Inc. and mounting tensions between the world’s two largest economies.JD.com and NetEase have raised a combined $7 billion with their secondary listings last month -- almost two-thirds of the total for Hong Kong in the first half of the year, according to data compiled by Bloomberg. Deloitte expects that as many as six Chinese companies currently traded in the U.S. will choose the city for a second listing by year-end. Robin Li’s Baidu Inc. is among those weighing that option.The city eased listing rules in 2018 to attract companies such as smartphone maker Xiaomi Corp. and Meituan Dianping, China’s largest on-demand food delivery service. The move could eventually reshape the composition of the benchmark Hang Seng Index, according to Deloitte’s Au. In May, the index manager announced new criteria to allow companies such as Alibaba to be included in the gauge.“The influx of these companies will greatly increase the representation of new-economy companies in Hong Kong, adding vibrancy and diversity to the market,” said Louis Lau, partner at KPMG China’s capital markets advisory group. “The continued listing of mega-sized Chinese firms also reinforces Hong Kong’s position as Asia’s financial hub.”(Updates with new U.S. bill in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Financial Times
Wall Street stocks rally after strong US jobs report
US stocks jumped at the opening bell after a strong jobs report fuelled hopes that the world’s largest economy is on track for a recovery from the damage caused by the coronavirus pandemic despite a recent rollback in lockdowns. The jobs figures were collated in the second week of last month, before the recent spike in infections.
- FX Empire
Q2 Set to End on Risk-On Note
Asian stocks are advancing on the final trading day of June, after a positive session on Wall Street, with market sentiment buoyed further by China’s better-than-expected June PMI readings. The data makes for encouraging signs that the world’s second largest economy is well on its way in overcoming the pandemic.
- FX Empire
Asia-Pacific Stocks Tumble; Australian Shares Fall to 2-Week Low, Japan Reports Dismal Retail Sales
China said Monday it will impose visa restrictions on U.S. individuals with “egregious conduct” on Hong Kong-related issues, mirroring U.S. sanctions.
- FX Empire
Asia-Pacific Markets: Hong Kong Down Ahead of New US Sanctions on China; Australia’s Quantas Plunges Over 9%
The United States is imposing visa restrictions on Chinese Communist Party officials believed responsible for restricting freedoms in Hong Kong.
- Financial Times
US stocks end lower as states roll back reopening measures
US stocks dropped on Friday after Texas and Florida rolled back reopening measures, raising fresh fears that the coronavirus would derail an economic recovery. Banks were among Wall Street’s sharpest fallers after the US Federal Reserve told them to limit shareholder payouts. In New York the S&P 500 ended down 2.4 per cent for its lowest close since June 11.
- FX Empire
Asia-Pacific Shares Mostly Higher as Investors Assess Impact of Second-Wave COVID-19 Outbreaks
China stocks closed the shortened three-session week on a firmer note, as investors cheered Beijing’s latest reforms in its capital markets.
- Financial Times
Stocks fall sharply amid new flare-ups of coronavirus
Global markets dropped on Wednesday as rising US Covid-19 cases and new quarantine measures fuelled fears that the virus could derail an economic recovery. Markets in the US and Europe slid, with the FTSE 100 and the Euro Stoxx 50 both closing 3.1 per cent lower. On Wall Street, the S&P 500 was down 2.8 per cent and the Nasdaq Composite 2.4 per cent lower by lunchtime trading, while the dollar rallied.
BloombergBarings Is 'Very Excited' About China, Lui Says
Jun.23 -- Mandy Lui, head of wealth and retail distribution for Greater China and Southeast Asia at Barings, discusses the outlook for China's economy, stocks and credit. She speaks with Tom Mackenzie and David Ingles on "Bloomberg Markets: China Open."
- FX Empire
Asia-Pacific Shares Settle Mixed on Second Wave Concerns
Japanese shares edged lower on Monday as worries about the growing number of coronavirus infections across the world kept investors on edge.
- Bloomberg
Stocks Jump Most in Week Amid U.S. Growth Optimism: Markets Wrap
(Bloomberg) -- Stocks rose for a third day as optimism over a recovering U.S. economy overrode concern that coronavirus cases are worsening in locations ranging from Texas to China. Treasury yields rose and the dollar strengthened.The S&P 500 climbed 1.9%, with energy, health care and materials leading all 11 industry sectors higher in the biggest gain in more than a week. The benchmark index initially surged after data showed U.S. retail sales jumped by the most on record. Federal Reserve Chairman Jerome Powell said the U.S. economy may be bottoming out during his semi-annual policy report to Congress.“Right now there’s more cross currents than I can ever remember,” said John Porter, chief investment officer of equities at Mellon Investments. “The weight of where investors are focusing day-to-day really swings wildly from fears of the second wave, concerns about escalating tensions with China, complete vacuum of visibility on earnings.”Stocks briefly pared gains after Florida reported that new cases rose to the highest level since the pandemic began and Texas saw hospitalizations surge. Elsewhere, Beijing shut its schools on concern about new infections.“It shows you that the market is still extremely reactive in both directions to any virus-related news, especially on the upside when it’s good news,” said Liz Ann Sonders, chief investment strategist at Charles Schwab & Co.Government stimulus has been a key feature of the global equities rally, despite soaring unemployment and signs that a second wave of the virus has started to emerge. Now there are signals that more economic support is on the way.The Trump administration is preparing a nearly $1 trillion infrastructure proposal as part of its push to spur the world’s largest economy back to life, according to people familiar with the plan. On top of that, the Fed will start buying individual corporate bonds.“The Fed is delivering on its promise to do whatever it takes,” said Todd Jablonski, chief investment officer at Principal Portfolio Strategies. “They can’t however offset the volatility that comes with risk assets as the number of cases picks up.”Elsewhere, oil climbed above $38 a barrel in New York amid signs of improving demand and declining production.These are some key events coming up:Policy decisions from the Bank of England and the Swiss National Bank are due later this week.The New York Stock Exchange may allow a limited number of market makers to return to its historic trading floor Wednesday.These are some of the main moves in markets:For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- FX Empire
Fed Floats Funds to Foil Bears
When markets are down and feeling blue, trust the Fed to come to the rescue.
- FX Empire
Asia-Pacific Stocks Retreat as Second Wave Fears Grows; Chinese Economic Data Misses Expectations
China’s industrial output expanded 4.4% in May from a year earlier but the gain was less than expected, official data showed on Monday.
- FX Empire
Asia-Pacific Shares End Lower as Volatility Looms
China stocks recouped earlier losses, led by tech, as investors cheered Beijing’s pledge to push forward with capital market reforms.
- FX Empire
Asian Shares Tumble after Fed Challenges Investor Optimism; Aussie Shares Plunge 3%
The Australian stock market was notably lower on Thursday after the Federal Reserve projected a sharp contraction for the U.S. economy this year.
- Bloomberg
NetEase Rally Bodes Well for Speculators in Chinese Mega Deals
(Bloomberg) -- One of Hong Kong’s most popular investment strategies -- borrow big and plow the money into a red-hot share sale -- is starting to work, just as the city prepares to host a flurry of Chinese listings.NetEase Inc. jumped as much as 9.9% in Hong Kong Thursday, on track to deliver the city’s best trading debut in more than a year for companies with a fund raising size of more than $1 billion. The retail portion of its share sale was more than 130 times oversubscribed, as mom-and-pop traders clamoured to get a piece of the Chinese gaming company. JD.com Inc.’s planned $3.9 billion share sale, which would be the world’s second-largest of the year, is also oversubscribed. China Bohai Bank Co. is planning to launch its own $2 billion offering.Such listings are reviving interest in Hong Kong’s market, boosting inflows and helping strengthen the local dollar at a time when the passing of a national security law has raised concerns about the city’s status as a financial hub. Tensions between Washington and Beijing have threatened to curtail Chinese companies’ access to U.S. capital markets, making such secondary listings closer to home more appealing.“Introducing another technology giant to Hong Kong is definitely good for market sentiment,” said Banny Lam, managing director at CEB International Corp. “It will help Hong Kong to attract more longer-term investors and demand for future listings like JD.com will be boosted since the investment now looks very profitable.”Trading as high as HK$135.2 ($17.4) per share in Hong Kong at their highest intraday level, NetEase shares were valued at about a 3% premium to those listed on the Nasdaq -- which are near a record high. One U.S. share is equivalent to 25 Hong Kong stocks. Alibaba Group Holding Ltd. rose 6.6% on its Hong Kong debut.The prospect of NetEase potentially joining the benchmark Hang Seng Index is also helping buoy investors’ confidence, Lam said. The company’s market cap exceeds that of 39 firms on the 50-member gauge, including the likes of CNOOC Ltd. and Sun Hung Kai Properties Ltd., according to data compiled by Bloomberg.The technology sector saw strong gains on Thursday. Shopping platform Meituan Dianping added 4.1% to hit a record high, while Tencent Holdings Ltd. rose to its highest since March 2018.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Bloomberg
Hedge Fund Manager Who Nailed 2015 China Crash Is Hoarding Cash
(Bloomberg) -- The Hong Kong arm of China’s biggest asset manager is amassing cash and building up short positions in a bet that the U.S.-China power games will escalate ahead of the American election later this year.The market hasn’t fully accounted for the “extreme steps” that President Donald Trump might take in an attempt to shore up flagging poll numbers, said Gan Tian, chief investment officer of China Asset Management (Hong Kong) Ltd., who oversees almost $400 million in hedge fund assets.“It could be to challenge China in South China Sea, it could be a military or diplomatic alliance with Taiwan that crosses the red line, or worse,” Gan said in a phone interview from Hong Kong. “If that happens it would ripple through the financial market immediately.”Tension is building between China and the U.S. after a three-year trade dispute. Politicians in Washington are lashing out over the coronavirus outbreak, China’s treatment of its Muslim minority and its tightening grip on Hong Kong. Congress is mulling sanctions against Chinese officials and companies and proposing to curtail their access to capital and markets.Gan cleared almost all of his positions in February and March, escaping the worst selloff since the financial crisis as the coronavirus spread globally. But even as markets have rallied, he’s still sitting tight.“I cut my positions very quickly, sensing a major macro change, regardless of whether the individual stocks in my book have pretty financial numbers,” said Gan, who holds more than 60% of his assets in cash at the moment.Gan has ridden out turbulent times before, managing to post a return of 14.9% in his Cayman-domiciled ChinaAMC China Growth Fund in 2015, a year when Chinese stocks were routed. It has returned 10% year to date. Since its inception in 2009, the fund has climbed 180.96%, beating both the Chinese and Hong Kong benchmarks.Globally hedge funds have declined 4.8% so far this year even after the industry rose 2.5% in May on the back of a rally in the S&P 500 Index, according to data compiled by Hedge Fund Research Inc.The conflict reached another level last month when Trump released an important foreign policy and defense report against China, Gan said. “The key acknowledgment of the 16-page report is that it proclaims China policy over the past two decades a failure,” he said. “In the future, it will be to constrain the growth of China.”Nevertheless, China’s markets will likely be able to weather a full blown crisis that spills over to the financial sector, Gan said. Foreign investors hold too few assets in China, including stocks, bonds and properties, to make any meaningful impact should they exit, he said.Foreign investors hold a combined $595 billion in Chinese debt and equities by March, accounting for 2.2% of the country’s overall bond market and 3.3% of the stock market, according to the latest data from the People’s Bank of China.Hong Kong instead will take center stage, with the currency peg under pressure as the U.S. mulls sanctions and changes to the city’s special trading status in response to Beijing enacting a new national securities law, he said.Gan predicts the benchmark Hang Seng Index will fluctuate between 22,000 to 24,500 points before the U.S. presidential election, compared with the current 25,049 level. He’s building up short positions against the benchmark, but would consider buying shares if the index falls below the lower band.One AssetHe is also shorting other sectors in Hong Kong, including property management, education and large e-commerce operators.Big Chinese stocks have been pushed up by liquidity injections from the pandemic response and could now face a correction as China’s central bank tightens policy to a more targeted approach in aiding small businesses, he said.While Hong Kong market faces considerable political risk, the city could stand to gain as more Chinese tech giants mull listings amid fears they will be forced to delist in New York, he said.The exchange has seen a rush of such secondary listings this month, with NetEase Inc. and JD.com Inc. raising billions of dollars.“If there’s one asset I’m most bullish on in China in the long run it’s the Hang Seng index,” Gan said. “It’s the future of China.”(Updates with hedge fund performance in the eighth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- FX Empire
Asia Pacific Shares Settle Mixed on China Inflation Data Miss, Jitters Ahead of Fed Announcements
Japan’s machinery orders slumped at their quickest pace in nearly two years. Wholesale prices fell at the fastest annual pace in nearly four years.
- Bloomberg
U.S. Stocks Halt Comeback Rally While Bonds Jump: Markets Wrap
(Bloomberg) -- U.S. stocks dropped on concern the blistering rally in risk assets overshot economic prospects. Treasuries climbed.The S&P 500 halted a surge that drove the gauge higher for 2020, led by energy and industrial companies. Small-cap shares underperformed after a 10% advance in six June sessions. The Nasdaq 100 briefly topped 10,000 as Apple Inc. jumped on a news report it’s preparing to announce a shift to its own main processors in Mac computers. Treasury yields sank to as low as 0.8%. The dollar fell for a ninth straight day -- its longest slide since 2006.After a record-breaking rally that added $21 trillion to global stock markets, technical indicators suggest a pullback is overdue. Sentiment toward U.S. equities swung to extreme confidence from equally extreme fear in less than three months. Nearly 300 stocks in the S&P 500 are trading at prices that exceed their consensus 12-month targets set by individual company analysts, data compiled by Bloomberg show. That’s a swift change from late March, when only two stocks boasted prices higher than analysts forecast.“When you have an overbought market, it will not take much to have the market consolidate,” said Quincy Krosby, chief market strategist at Prudential Financial Inc. “Whether it is a sideways market or a 5% to 10% pullback, there will be something that ensures we will see a pullback.”While the easing lockdowns around the globe fueled a stock rally from the lows, the World Bank warned the economy will contract the most since World War II this year. U.S. job openings plummeted in April to the lowest since 2014 and separations remained elevated as the pandemic ripped through the labor market with devastating speed.What to watch this week:The Fed’s next policy decision is Wednesday. Officials are expected to leave rates above zero.OECD releases its economic outlook Wednesday, a twice-yearly analysis of the economic prospects of member countriesEuro-area finance ministers meet Thursday to discuss the EU’s recovery package and Eurogroup presidency succession.These are some of the main moves in markets:StocksThe S&P 500 dipped 0.8% as of 4 p.m. New York time.The Stoxx Europe 600 Index fell 1.2%.The MSCI Asia Pacific Index rose 0.7%.CurrenciesThe Bloomberg Dollar Spot Index decreased 0.1%.The euro climbed 0.4% to $1.1334.The Japanese yen appreciated 0.6% to 107.76 per dollar.BondsThe yield on 10-year Treasuries decreased five basis points to 0.82%.Germany’s 10-year yield climbed one basis point to -0.31%.Britain’s 10-year yield rose less than one basis point to 0.336%.CommoditiesThe Bloomberg Commodity Index climbed 0.1%.West Texas Intermediate crude increased 1.6% to $38.80 a barrel.Gold climbed 0.9% to $1,720 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
