Topic

A-sharesi

A-share focus is for readers wanting to know more about mainland Chinese investment markets, and especially the A-share market in Shanghai, which has become accessible to international investors since the launch of the Shanghai-Hong Kong stock connect scheme in late 2014.

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  • The MSCI Asia Pacific Index is expected to see its first year-on-year profit growth in eight quarters, with earnings per share rising 4.1 per cent for the March quarter
  • Corporate profit growth appears to be accelerating, creating a favourable view of the outlook for Asian equity markets, Dalma Capital’s Gary Dugan says

Hang Seng Index hovers near a five-week low after comments by Fed chairman Jerome Powell, who said it could take ‘longer than expected’ to get inflation back on target.

Hong Kong stocks eased, pressured by the weak Chinese yuan currency and following trade data that showed a contraction in exports from the world’s second-largest economy.

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Hong Kong stocks tumble after data suggested China’s consumption demand remains weak and as investors lowered their bets on the US Federal Reserve cutting rates in June.

The Chinese stock market is poised to see the emergence of shareholder resolutions on ESG issues next year, as incoming corporate governance reforms start allowing many more minority owners to present proposals for voting, a stewardship expert says.

China’s state-directed buying binge has swollen the size of exchange-traded funds (ETFs) tracking the underlying benchmark CSI 300 Index, helping them outperform the market while boosting their asset-size ranking.

Global fund managers have become more positive about Chinese stocks after the securities regulator took a flurry of forceful measures to halt a three-year decline, according to a joint-venture brokerage of HSBC Holdings.

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Investors should exercise more caution when it comes to the valuations of Chinese stocks, as corporate earnings growth is set to slow because of Beijing’s pursuit of high-quality economic growth, according to China’s biggest money manager.

Chinese state intervention has tentatively put a floor under stocks, but corporate earnings show little sign of providing upwards momentum as pressure is building for investors to pocket profits from the decent gains the market has made.

Global fund managers have increased their exposure to Chinese yuan-traded stocks for a second month in March, indicating that foreign appetite for these shares is recovering.

‘The slowdown in IPOs will carry on, and the listing process for mega IPOs is expected to be lengthened,’ an analyst says, as the market watchdog has pledged to improve listing quality.

Hong Kong stocks underperformed the region as sentiment was dealt a blow by the cancellation of a Hong Kong IPO by Alibaba Group’s logistic unit and a cautious outlook from electric vehicle maker BYD, with the yuan’s slide adding to the gloom.

BYD reported an 81 per cent jump in earnings last year to an all-time high on the back of record deliveries of new electric vehicles. Weak consumer spending might, however, cool sales, it said.

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Hong Kong stocks closed higher as China Merchants Bank and China Resources Land posted better-than-estimated results and China’s central bank governor struck an upbeat tone about the property market.

The sell-off follows Shenzhen exchange’s statement that it would take action against Citic for failing to fully clarify issues regarding Liangang Optoelectronic’s IPO prospectus.

Hong Kong stocks retreated after a brief boost from a resurgent yuan currency, as investors are watchful awaiting earnings announcements this week from about a third of the companies that comprise the benchmark.

Hong Kong stocks retreated as the focus returned to corporate earnings and after the euphoria over the US Federal Reserve’s dovish comments evaporated. The yuan broke a key level for the first time since November, adding to the gloomy sentiment.

The cuts are part of a broader cost-reduction programme launched 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.

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.

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.