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Despite extradition protests, China’s economic stimulus and US monetary policy easing leave Hong Kong well placed

Markets always have to react. Attacks on oil tankers in the Middle East prompt a higher oil price. China unveils measures to boost automobile sales and the price of palladium is affected. But, while immediate market reactions are perfectly rational in the moment, those decisions may not stand the test of time. Take Hong Kong for example. Clearly, last week’s use of beanbag rounds, rubber bullets and tear gas in Admiralty was hardly going to elicit a positive reaction from investors, and the… Source link

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Amid the trade war, Asia cannot count on Chinese stimulus to boost growth this time around

The resurgence of US-China trade tensions is weighing on equity market performance in emerging Asia. This begs the question of whether prospective monetary and fiscal stimulus measures from China could give the region the needed boost – but markets would be wrong to pin their hopes on this.Recent data flow paints a weak picture of the economic fundamentals in the region. In China, the official manufacturing purchasing managers index, which gauges sentiment among factory operators, for May came… Source link

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Chinese stocks post biggest gain in month on fiscal stimulus to shore up growth

China’s stocks climbed the most in a month on signs policymakers were ramping up fiscal tools to hold in check a decline in growth just before the release of key economic data.The Shanghai Composite Index rallied 2.6 per cent, or 73.59 points, to 2,925.72 on Tuesday, its biggest gain since May 10. Hong Kong’s Hang Seng Index rose 0.8 per cent to 27,789.34.Signs have been mounting that Beijing has been stepping up efforts to arrest a deceleration in economic growth. The finance ministry said on… Source link

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China economy to get more stimulus to fight trade war tariffs? Official drops hint help may come

The debate over whether China needs a new round of stimulus to offset weakening economic growth has returned, following disappointing April economic data and the threat by the United States to expand tariffs to cover all Chinese imports.That debate will intensify with the news that Wang Yang, a member of the ruling Communist Party’s policymaking Politburo Standing Committee, told Taiwanese businessmen at a meeting in Beijing on Thursday that the trade war, in the worst case scenario, could cut… Source link

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China stocks rise amid hopes of fresh stimulus measures to boost sagging economy

Markets in China and Hong Kong rose for a second day, as traders expect the government to boost the economy with fresh stimulus measures while remaining hopeful of a trade deal.The Shanghai Composite ended up 0.58 per cent at 2,955.71, and the CSI 300 of large caps gained 0.45 per cent to 3,743.96. Both benchmarks reached their highest levels this month.The Hang Seng Index eked out a gain of 0.02 per cent, to 28,275.07.According to Castor Pang Wai-sun, head of research for Core Pacific-Yamaichi… Source link

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China, Hong Kong stocks gain on trade, stimulus hopes

Chinese stocks broke a two-day losing streak as traders hoped for fresh stimulus on weak economic data and an end to the US-China trade impasse.The Shanghai Composite gained 1.9 per cent on Wednesday to end at 2,936.06, while the CSI 300 of large stocks in Shenzhen and Shanghai rose 2.2 per cent to finish at 3,725.33.Hong Kong’s Hang Seng also rose, ending up 0.58 per cent to 28,286.33, after a 1.5 per cent loss on Tuesday.Foreign money also pumped up mainland benchmarks. Foreign traders bought… Source link

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China 

Trade war to rescue China’s stalling car firms as Beijing considers stimulus to boost domestic consumption

China’s embattled automobiles sector is banking on Beijing to rescue it with the introduction of strong incentives as the country seeks ways to shake off the gloom surrounding its escalating trade war with the United States.Last month, passenger car sales stood at 1.51 million units, a decline of 16.9 per cent from the same period in 2018, according to the China Passenger Car Association. More importantly, April was also the eleventh consecutive month of sales declines for an industry that… Source link

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China 

China’s economic ‘resilience’ without further stimulus questioned after Donald Trump’s US tariff threats

China may need to consider introducing even more economic stimulus, while its top decision-making body headed by President Xi Jinping could be forced to revisit the old playbook it hastily walked away from just last month, to counter the increased tariff threats from US President Donald Trump, according to economists.Barclays Bank economists in Hong Kong estimate an increase from 10 per cent to 25 per cent on US$200 billion of Chinese imports, a situation which is set to become a reality on… Source link

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China 

China may pull U-turn stimulus in response to potential US trade war tariff hike, analysts say

China may up the pace and size of its economic stimulus to cushion the impact on already sluggish consumption, following the escalation of trade tensions, analysts said.The options include additional cuts in taxes and fees, incentives for buying big ticket items like appliances and cars, and a further lowering of interest rates to boost lending to the real economy, particularly for small firms that will be hit hardest by increased trade tensions.A further reduction in property sales… Source link

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China 

China’s PMI suffers surprise decline in April despite Beijing’s stimulus efforts

China’s manufacturing purchasing managers’ index fell in April, suggesting the economy is continuing to battle headwinds of the trade war with the United States and sluggish demand.The manufacturing purchasing managers’ index (PMI), a gauge of sentiment among factory operators, fell to 50.1 in April, a decrease on March’s performance of 50.5, and below the median expectations of a poll of Bloomberg analysts, which had predicted an unchanged reading of 50.5.Non-manufacturing PMI, which covers… Source link

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