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China stock market
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Some officials in the Chinese government are so desperate to get their desired narrative across that they have started to disregard basic principles, an approach which may carry a high cost in the long run.

  • The London-based fund house is planning to lay off 20 of the 120 staff it employs on the mainland
  • Fidelity launched a broader cost-reduction programme globally this month, which is expected to save US$125 million and make 9 per cent of its workforce redundant
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The CSRC under Wu Qing will aim to develop 10 first-class brokerages including two or three that can compete with top global names like Goldman Sachs and Morgan Stanley by 2035.

WuXi AppTech, WuXi Biologics and Xpeng weighed on the market as fourth-quarter earnings of Chinese companies trail those of peers in the rest of Asia, according to Goldman Sachs.

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In this week’s issue of the Global Impact newsletter, we reflect on what is in store for Hong Kong’s stock market and its operator, the Hong Kong Exchanges and Clearing Limited (HKEX), in the Year of the Dragon.

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China is tightening the screws on new domestic stock offerings, issuing four documents at once laying out some of the harshest rules, checks and penalties yet to crack down on fake accounting and restore confidence.

Investors should seek refuge in Chinese domestic consumption stocks and avoid hardware and semiconductor makers to ride out the US-China geopolitical uncertainty, according to Goldman Sachs.

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Stocks suffer from a twin blow on interest-rate front. China keeps its one-year loan facility unchanged, while stronger than expected US price reports this week undermine bets on a rate cut in the next two meetings.

The New York-based bank will continue to invest in Hong Kong, betting that the city where it has been doing business for a century can recover when the economic cycle turns, and live up to its potential as the financial centre of the world’s second largest economy.

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Hong Kong stocks took a breather from a three-day gain that helped key equity gauges overcome some key technical barriers, with sportswear maker Li Ning and Chinese developers weighing on the market.

South Korea plans to review the sale of potentially high-risk investments after a probe found that banks mis-sold China-linked structured products, exposing retail investors to more than US$4 billion in losses.

Hong Kong-listed stocks are witnessing a surge in share buy-backs as companies use their cash hoard to boost valuations, lift investor confidence.

Hong Kong stocks were lifted by hopes more companies could launch share buy-backs to take advantage of the current market valuations, sending the Hang Seng Index into the black for the year and thrusting the Hang Seng Tech Index into a bull market, defined as a rise of 20 per cent from recent lows.

The minimum asset requirement for investing in Hong Kong equities via the Stock Connect scheme should be cut to 100,000 yuan (US$13,900) from 500,000 yuan, SFC chairman Tim Lui says.

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Hong Kong stock market began the week on a firm note amid signs of a demand pickup in the world’s second largest economy and following positive investor flow data.

San Francisco-based Matthews International, which had fewer than 10 people in the Shanghai office, will centralise its regional research business in Hong Kong.

Hong Kong stocks rose, amid expectations global central banks will ease monetary conditions this year following dovish comments from heads of the US Federal Reserve and the ECB.

Shares of Chinese gold producers and jewellers have soared, tracking the surge in bullion prices fuelled by hopes of interest-rate cuts by the US Federal Reserve and the uncertain environment, but the rally could be nearing an end.

Hong Kong stock markets weakened, led by big losses in Wuxi Biologics and Wuxi AppTec, after a US bill proposed restricting business with Chinese biotech companies on national security grounds.

New head of China’s securities regulator has promised rigorous enforcement of the law and a firm hand against those who break it in his first press conference.

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Downward pressure on Chinese stocks is piling up, as state buying is likely to wane after taking a key stock gauge hit a psychologically important level, and institutional investors remain cautious amid the lack of policy stimulus, analysts say.

Tech stocks lead Hong Kong stock markets higher ahead of e-commerce giant JD.com’s results as focus returned to corporate earnings after mood was dampened by the lack of stimulus at China’s ongoing annual parliamentary meeting

Bearish call reflects jitters among overseas investors even as both onshore and offshore shares show nascent signs of stabilisation amid state support and the return of foreign inflows.

Thai Prime Minister Srettha Thavisin urges market authorities to tighten laws to boost investors’ trust and confidence and the review could include extending a ban on short sales to individuals, in a move similar to those made by China and South Korea.

Hopes for further policy loosening and a lull in economic data releases mean ‘the moment on small-caps has yet to run its course’, analyst says.

Hong Kong stocks ended unchanged but the mood was cautiously optimistic as investors awaited details from a meeting of lawmakers in Beijing, where it is widely expected that steps to support the market and the economy will be unveiled.

The government’s recent adjustments are ‘steps in the right direction’, but further relaxations are needed to revitalise the industry, according to the Asian Securities & Financial Markets Association.