China 

Hong Kong’s weak dollar is a victim of northbound investments rushing into the stock exchanges of Shanghai and Shenzhen

The rally in Chinese stocks has been bad news for the Hong Kong dollar.Equity investors are selling the currency for the Chinese yuan and buying mainland shares through the stock trading connects, according to Ronald Man, a strategist at Bank of America Merrill Lynch. That’s keeping the Hong Kong dollar lower in the spot market, he said. The currency has been at the weak end of its trading band for much of this month.Net northbound fund flows have climbed to 130 billion yuan (US$19.4 billion)… Source link

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Shenzhen Transsion applies to raise capital on Shanghai’s technology board after taking Africa’s phone market by storm

Shenzhen Transsion Holdings, which makes three of every 10 smartphones sold in Africa, has thrown its hat into the ring to raise capital on Shanghai’s tech board via an initial public offering (IPO), becoming one of the first among China’s home-grown technology champions to kick off President Xi Jinping’s fundraising project.The company completed a three-month counselling period from December 2018 until March, during which an investment bank provided guidance and advice on the IPO applicant’s… Source link

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All mainland China markets open higher, with consumer stocks leading in Shenzhen

The Hong Kong market opened flat on Friday, while leading benchmarks in mainland China recovered losses made in previous sessions.With the conclusion of the annual National People’s Congress in Beijing on Friday, and the release of most of key China economic data on Thursday, investors will once again turn their attention to the US-China trade war and corporate results, said traders.“Investors remained sidelined on Friday. Over the short term, I expect the Hang Seng Index to trade in a tight… Source link

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China 

Shenzhen banks become first in China’s megacities to ease mortgage rates – others may follow suit, say analysts

Mortgage rates in Shenzhen have begun to creep down, in a sign that the strict property controls holding house prices in check in mainland China’s biggest cities may be starting to loosen.Some of the southern city’s banks have tentatively lowered their borrowing costs for homeowners in the last few days, making Shenzhen the first of China’s so-called tier-1 cities to bring down the prohibitively expensive rates.Analysts said lenders in other megacities may follow suit.The average mortgage rate… Source link

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Everybody’s rushing for a Shenzhen address, betting tech investments will pick up in Greater Bay Area

Eric Ng runs an IT start-up in Hong Kong but he operates a back-office in Shenzhen’s IT cluster of Nanshan. He pays 12,000 yuan (US$1,793) a month in rent for a 30 square metre office in the almost 20-year-old Keyuanxi Building – 40 per cent more than the going rate in Futian – as he wanted to be in the same neighbourhood as tech giants Tencent and Huawei.Here Ng employs a staff of six for back-end programming and web development for his food takeaway app called Goforeat, which, he says,…

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Shenzhen margin financier’s 5-for-1 funding goes some way to explain why a sense of deja vu is filling China’s stock market rally

Yale Sun, who quit an investment bank to set up his private-equity fund in Shenzhen, has found the mother lode of quick-gain investments in China: providing margin financing to investors who are desperate to plunge into this year’s best-performing global stock market.His fund provides 5-for-1 financing, lending an investor with 1 million yuan (US$149,273) a loan of up to 5 million yuan, with 1.3 per cent monthly interest. The money is deposited into a brokerage account jointly managed by the… Source link

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Hong Kong economy surpassed by neighbour Shenzhen for first time in 2018 as China’s hi-tech hub soars

Shenzhen’s economy surpassed Hong Kong’s for the first time in 2018 after the city played an instrumental role in helping transform its neighbour and once rural backwater into China’s hi-tech hub.Economic growth in Hong Kong rose by just 3 per cent to HK$2.85 trillion (US$363.09 billion) last year, hurt by the effects of the US-China trade war particularly in the last quarter of the year, according to the annual budget revealed by Hong Kong finance chief Paul Chan Mo-po on Wednesday.Shenzhen’s… Source link

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Hong Kong’s Link Reit makes first move into Shenzhen, paying U$$975 million for shopping centre

Link Reit, the largest property investment trust in Asia, on Wednesday announced that it had bought a shopping mall close to a high-speed railway station in Shenzhen for 6.6 billion yuan (US$975 million).The six-storey shopping precinct, called Central Walk and located in the central business district of Futian, is the company’s first acquisition in the city. It is its second in the “Greater Bay Area”, which is destined to be China’s innovation and financial powerhouse, embodying President Xi… Source link

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How Huawei went from small-time trader in Shenzhen to world’s biggest telecoms equipment supplier

Before 2004, few mobile network operators in Europe had heard of Huawei Technologies, much less considered it a potential supplier. But that changed after Richard Yu Chengdong, who now heads Huawei’s consumer business, proved to a small Dutch operator the lengths to which the Chinese company was willing to go to serve its customers.Back then, Telfort was the smallest of four cellular communications providers in the Netherlands. Daunted by the prevailing market prices to deploy a 3G network, the… Source link

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The biggest winners in Shenzhen, ‘China’s Silicon Valley’? Pig and chicken farmers

The big stock-market winners in Shenzhen aren’t artificial intelligence and semiconductor companies. They are farmers. Chicken breeders Shandong Xiantan and Shandong Minhe Animal Husbandry have climbed around 40 per cent this year through Tuesday, while pig farmer Muyuan Foodstuff is up 34 per cent. The Shenzhen Stock Exchange’s agriculture index has rallied more than any other subgauge in 2019, and is the only one to eke out a gain in the past three years as the city’s benchmark slid 22 per cent. Analysts attribute the more recent gains to the…

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