iShares MSCI Hong Kong Index Fund (ARCA: EWH)

Ultime notizie per iShares MSCI Hong Kong Index Fund (ARCA:EWH)

iShares MSCI Hong Kong Index Fund

Financial Services

Real Estate

Industrials

Utilities

Consumer Cyclical

Consumer Defensive

Communication Services

The Fund seeks to track the investment results of the MSCI Hong Kong 25/50 Index (the Underlying Index), which is a free float-adjusted market capitalization-weighted index that is designed to measure the performance of the large- and mid-capitalization segments of the equity market in Hong Kong. The Underlying Index is rebalanced quarterly using an optimization process that aims to minimize the constituent weight differences between the Underlying Index and the MSCI Hong Kong Index (the Parent Index). The Underlying Index uses a capping methodology that limits the weight of any single group entity (constituents that MSCI determines have a control relationship) to a maximum of 25% of the Underlying Index weight, and the sum of all group entities with a weight above 5% to an aggregate of 50% of the Underlying Index weight. A group entity is a group of companies that operate as an affiliated corporate group but may separately issue listed securities.

Aia Group Ltd

iShares MSCI Hong Kong ETF

News

TKLF

Yoshitsu Signs Five-Year Strategic Partnership With Saynoday To Expand "Reiwatakiya" Brand In Hong Kong And Key Asian Markets; Agreement Includes $64.3M Product Procurement And Plans For Five New Store Openings By 2027

iShares MSCI New Zealand Investable Market Index Fund

ENZL

GOOG

GOOGL

Google To Introduce New Requirements For Advertisers Promoting Financial Services In Ireland, New Zealand, South Korea, And Thailand; Will Begin Enforcing Updated Financial Services Verification Process Policy On Nov 7

U.S. metals and mining stocks posted their strongest one-day rally of 2024 on Tuesday, driven by China&#8217;s unexpected <a href="https://www.benzinga.com/markets/asia/24/09/41003814/chinese-stocks-jump-as-central-bank-unveils-major-stimulus-to-spur-economy-a-step-in-the-right-direc">and substantial monetary easing. </a>
The People&#8217;s Bank of China&#8217;s (PBoC) stimulus measures, including cuts to the reserve requirement ratio and repo rates, boosted global demand for raw materials, sparking a surge in metal prices and mining stocks.
The SPDR S&amp;P Metals &amp; Mining ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XME#NYSE">XME</a>) surged 4.2%, marking its best one-day performance since November 2023. The move reflected heightened optimism in the sector, which benefits heavily from demand in China, the world's largest consumer of raw materials.
<h3 class="wp-block-heading">Chart: Metals &amp; Mining Stocks Mark Best Day In Almost A Year</h3>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="371" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/24101235/image-190-1024x371.png" alt="" class="wp-image-563348" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/24101235/image-190-1024x371.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/24101235/image-190-300x109.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/24101235/image-190-768x278.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/24101235/image-190-1536x556.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/24101235/image-190.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Image: <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent092424&amp;t=be2bearmibe3na1">Benzinga Pro</a></figcaption></figure>
<h3 class="wp-block-heading">Precious, Industrial Metals Shine</h3>
Gold prices hit yet another fresh record on Tuesday, rising 0.3% to $2,638 per ounce, the highest in history, as the metal benefited from expectations of higher liquidity from global central banks. 
The People&#8217;s Bank of China&#8217;s 50-basis-point cut to the reserve requirement ratio is expected to boost bank lending, while the reduction in key interest rates provides relief to heavily indebted sectors. This move is also seen as a strong signal that further monetary easing may be on the horizon.
Silver jumped 1.2%, while copper saw an even bigger rally, surging over 3%. The broad gains in metals prices were driven by expectations of increased Chinese demand, as the country&#8217;s easing measures are aimed at stimulating domestic economic activity.
Last week, the Federal Reserve slashed interest rates by 50 basis points to 4.75%-5%, offering another strong tailwind to metal commodities. 
<h3 class="wp-block-heading">Mining Stocks, ETFs Post Gains</h3>
Mining-related stocks and ETFs are enjoying strong performance Tuesday. The Global X Copper Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COPX#NYSE">COPX</a>) climbed over 6%, reflecting the sharp increase in copper prices, while the Global X Silver Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SIL#NYSE">SIL</a>) rose 2%.
Here's a look at the five strongest performers within the SPDR S&amp;P Metals &amp; Mining ETF stocks on Tuesday
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Company</th>
<th>Price</th>
<th>1-Day Return</th>
</tr>
</thead>
<tbody>
<tr>
<td>MP Materials Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MP#NYSE">MP</a>)</td>
<td>$15.72</td>
<td>+10.48%</td>
</tr>
<tr>
<td>Ramaco Resources, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/METC#NYSE">METC</a>)</td>
<td>$11.04</td>
<td>+8.83%</td>
</tr>
<tr>
<td>Warrior Met Coal, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HCC#NYSE">HCC</a>)</td>
<td>$59.94</td>
<td>+7.81%</td>
</tr>
<tr>
<td>Alcoa Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AA#NYSE">AA</a>)</td>
<td>$36.78</td>
<td>+7.45%</td>
</tr>
<tr>
<td>Cleveland-Cliffs Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLF#NYSE">CLF</a>)</td>
<td>$12.74</td>
<td>+7.36%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 10:30 a.m. ET Photo via Shutterstock. </figcaption></figure>

Asia

Large Cap

Mid Cap

Sector ETFs

Commodities

Small Cap

Tech

ETFs

BABA

COPX

KWEB

METC

Gold Breaks Records On China's Policy Stimulus: Mining, Metal Stocks Exhibit Strongest 1-Day Rally In 2024

Chinese stocks soared on Tuesday following an unexpected and substantial monetary stimulus from the <a href="https://www.benzinga.com/topic/china">People&#8217;s Bank of China (PBoC). </a>
The central bank announced cuts to the reserve requirement ratio (RRR) for banks and the seven-day repo rate, just a day after lowering the 14-day reverse repo rate.
<h3 class="wp-block-heading">People&#8217;s Bank of China Implements Aggressive Monetary Easing</h3>
The PBoC Governor, Pan Gongsheng, revealed a 50-basis-point cut to the bank&#8217;s reserve requirement ratio, reducing it from 10.0% to 9.5% for commercial banks. 
This cut is set to inject approximately 1 trillion yuan ($140 billion) of liquidity into the banking system, allowing banks more capital to lend.
In addition to the RRR cut, Pan also announced a 0.5 percentage point reduction in existing mortgage rates, offering relief to the struggling property market.
The seven-day repo rate was slashed by 20 basis points to 1.5%, while the 14-day reverse repo rate, already lowered on Monday, saw a 10-basis-point reduction to 1.85%. These moves are seen as a clear signal that Chinese policymakers are increasingly focused on addressing the economic slowdown.
<h3 class="wp-block-heading">Analysts Praise PBoC&#8217;s Moves</h3>
&#8220;The rare simultaneous cut of policy rates and the RRR, the relatively large magnitude of cuts, and unusual guidance on another 25-50 basis point RRR cut by the end of this year, indicated policymakers&#8217; growing concerns over downside risks to domestic economic activity,&#8221; wrote Xinquan Chen, an economist at Goldman Sachs, in a note.
While these monetary measures point to a more proactive stance from the Chinese government, Chen warned that more fiscal stimulus will be required to bolster domestic demand. 
Goldman Sachs expects another 25-basis-point RRR cut in the fourth quarter of 2024, along with further reductions in 2025. The bank forecasts two additional 25-basis-point RRR cuts in the first and third quarters of 2025, as well as two 10-basis-point policy rate cuts in the second and fourth quarters.
ING Group commented that markets had initially anticipated smaller 10-basis-point cuts, making the 20-basis-point reduction more aggressive than expected. However, they cautioned that the long-term impact would depend on whether the PBoC continues with more cuts or adopts a &#8220;wait-and-see&#8221; approach following the current measures.
&#8220;We feel today&#8217;s measures are a step in the right direction, especially as multiple policies were announced together rather than spaced out piecemeal. We continue to believe that there is room for further easing in the months ahead, as most global central banks are now on a rate-cut trajectory,&#8221; ING&#8217;s China chief economist Lynn Song said.
<h3 class="wp-block-heading">Market Reactions: Chinese Stocks, ETFs Rally</h3>
The Hang Seng Index jumped 4.13% on Tuesday, closing at 19,000.56 — the highest level since May. 
U.S.-listed ETFs investing in Chinese equities also rallied strongly in premarket trading. The iShares MSCI Hong Kong Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWH#NYSE">EWH</a>) was up 2%.
The Chinese yuan appreciated 0.3%, reaching its strongest levels since May. 
Major U.S.-listed ETFs focused on China also surged ahead of the market open. The KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>) jumped 5.6%, the iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) climbed 5.4%, and the iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) rose 5.3%.
Chinese companies listed on U.S. exchanges also saw significant premarket gains. 
Chinese EV-maker Li Auto Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>) surged 8%, while NIO Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) gained 7%. JD.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) rose 7.1%, and Alibaba Group Holdings Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), China's largest publicly traded company with a market capitalization of $209 billion, climbed 5.4%.
Read now: 
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/09/40998340/nasdaq-s-p-500-futures-firm-chinas-economic-stimulus-fuels-commodities-bitcoin-steady-heres-what-tr">Nasdaq, S&amp;P 500 Futures Firm, China&#8217;s Economic Stimulus Fuels Commodities, Bitcoin Steady: Here&#8217;s What Traders Should Be Watching Tuesday</a></li>
</ul>
Photo: Shan_shan/Shutterstock.com

Macro Economic Events

Specialty ETFs

Emerging Market ETFs

Global

Economics

Movers

MCHI

Chinese Stocks Jump As Central Bank Unveils Major Stimulus To Spur Economy: 'A Step In The Right Direction'

The U.S. dollar plunged to a 17-month low against the Chinese yuan after the Federal Reserve slashed rates as the People&#8217;s Bank of China held them steady overnight, raising pressures on interest-rate divergences between the <a href="https://www.benzinga.com/topic/china">world&#8217;s two major economies. </a>
The People Bank of China (PBoC) opted to hold the one-year loan prime rate (LPR)—a critical benchmark for most corporate and household loans—at 3.35% during its September fixing. The five-year LPR, a reference for property mortgages, also remained steady at 3.85%.
According to the latest monetary report, China's economy grew by 5% year over year in the first half of 2024, showing resilience despite a complex global environment.
Inflation remained subdued, with the consumer price index (CPI) increasing by just 0.1% year-over-year. The central bank noted that while economic performance was stable, domestic issues such as &#8220;insufficient effective demand&#8221; and &#8220;the transition to new growth drivers&#8221; continue to challenge the economy.
The PBoC&#8217;s accommodative monetary stance is designed to provide necessary financial support for a sustainable economic recovery. However, it highlighted that external conditions remain &#8220;complex, grim, and uncertain,&#8221; contributing to a cautious approach to navigating headwinds.
<h3 class="wp-block-heading">Chinese Stock Market Performance</h3>
Chinese domestic stocks, as tracked by the Shanghai Composite Total Return Index, closed flat for the day, reflecting market uncertainty. However, offshore Chinese stocks fared better, with Hong Kong-listed entities, tracked via the iShares MSCI Hong Kong Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWH#NYSE">EWH</a>), advancing by more than 1%.
In U.S. premarket trading, major Chinese stocks listed on American exchanges also saw gains:
<ul>
<li>XPeng Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>): +3.3%</li>
<li>Li Auto Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>): +1.5%</li>
<li>Alibaba Group Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>): +1.3%</li>
<li>Tencent Music Entertainment Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TME#NYSE">TME</a>): +0.8%</li>
</ul>
<h3 class="wp-block-heading">Bank of Japan Holds Rates; Yen Slips</h3>
In Eastern Asia, the Bank of Japan (BoJ) also held interest rates steady at 0.25%, aligning with market expectations. 
Japan's economy showed a moderate recovery, though signs of weakness were observed in certain sectors, according to the BoJ statement.
On the inflation front, Japan's core CPI (excluding fresh food) has risen by 2.5-3.0% year-over-year, driven by wage increases and moderate price hikes in services.
Following this announcement, the Japanese yen, tracked by the Invesco CurrencyShares Japanese Yen Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXY#NYSE">FXY</a>), fell by over 1% against the U.S. dollar. Meanwhile, Japanese equities rallied, with the Nikkei 225 index, as represented by the iShares MSCI Japan Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWJ#NYSE">EWJ</a>), surging by 1.5% after a 3% gain in the earlier session.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40948624/traders-brace-for-friday-volatility-as-over-5-trillion-in-options-expire-could-trip">Traders Brace For Friday Volatility As Over $5 Trillion In Options Expire: Could &#8216;Triple Witching&#8217; Spoil Fed&#8217;s Rally?</a></li>
</ul>
Photo: Shutterstock

Currency ETFs

Federal Reserve

XPEV

Interest Rate Divergence Weakens Dollar To 17-Month Low Against Yuan: XPeng, Li Auto Among 4 Stock Movers

Jaguar Supports Proof-Of-Concept Studies For Rare Disease Indications With Results Expected By End Of 2024 And 2025

JAGX

Jaguar Health Announces New Patent Issued In Hong Kong For Napo Pharmaceuticals' Crofelemer In Treating Short Bowel Syndrome And Related Conditions

Patents Include U.S., China, Canada, Hong Kong, And Mexico; Expects Significant Contribution To Growth In Multi-Billion Unit Market As Market Penetration Increases

SKYX

SKYX Technologies Announces Production Start Of Global Patented Advanced Smart Plug & Play Recessed Light

Apple Vision Pro will launch in China mainland, Hong Kong, Japan, and Singapore on June 28 and in Australia, Canada, France, Germany, and the United Kingdom on July 12. Your apps and games will be automatically available on the App Store in regions you've selected in App Store Connect.
&nbsp;
<a href="https://developer.apple.com/news/?id=is9ltg6s" title="https://developer.apple.com/news/?id=is9ltg6s">https://developer.apple.com/news/?id=is9ltg6s</a>

AAPL

'The App Store on Apple Vision Pro expands to new markets' - Apple Update

<a href="https://www.apple.com/apple-events/event-stream/" title="https://www.apple.com/apple-events/event-stream/">https://www.apple.com/apple-events/event-stream/</a>

Apple Announces Expansion Of Apple Vision Pro Pre-Orders To New Countries; Pre-Orders Begin June 13 For China, Hong Kong, Japan, And Singapore With Availability On June 28; Australia, Canada, France, Germany, And UK Pre-Orders Start June 28, Available July 12

WIIM

iShares MSCI Hong Kong Index Fund is higher amid broader strength in Asia-Pacific stocks.

iShares MSCI Hong Kong Index Fund is trading higher amid strength in Chinese stocks.

China unveiled its economic objectives for the year at the 2024 National People's Congress, stirring diverse reactions across equity <a href="https://www.benzinga.com/topic/china">indices tracking Chinese stocks. </a>
While domestic Chinese stocks have displayed signs of optimism, rallying in response to the government&#8217;s announcements, offshore Chinese equities, accessible to foreign investors, experienced a notable decline.
Beijing announced a GDP growth target of around 5%, coupled with a consumer price index (CPI) inflation ceiling of 3%, more than 12 million new urban jobs, and an unemployment rate of 5.5%. 
<h4 class="wp-block-heading">Disappointment In Fiscal Policy</h4>
Notably, officials announced a planned 3% on-budget deficit ratio, a decrease from last year&#8217;s revised figure of 3.8%. This move has left foreign investors feeling underwhelmed, as they hoped for more substantial fiscal efforts to stimulate the recovery.
The government&#8217;s plans to allocate RMB 3.9 trillion in local government special bonds – a marginal increase from RMB 3.8 trillion in 2023 – alongside RMB 1 trillion in central government special bonds – a notable shift from none issued between 2021 and 2023&nbsp;– failed to significantly bolster foreign sentiment.
Xin-Yao Ng, an investment director at Abrdn Asia Ltd., said that based on current information, government spending doesn&#8217;t appear to offer a significant boost to the economy, disappointing foreign investors. 
Goldman Sachs suggests that policymakers remain committed to prioritizing economic growth this year, as evidenced by their ambitious growth target and unchanged CPI inflation target. However, the upcoming release of the fiscal budget report within the next 1-2 days will provide further insights into the effective fiscal budget ratio and the key areas of spending focus.
The Market Divide: Local vs. Foreign Sentiment
This cautious fiscal approach has led to a divergent performance in the equity markets. 
On the one hand, mainland Chinese markets such as the CSI 300 and the China A50 Index have experienced gains, reaching their highest levels since late November 2023. 
Contrarily, the Hang Seng Index, as tracked by the iShares MSCI Hong Kong Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWH#NYSE">EWH</a>), heavily skewed towards foreign participations, suffered its worst daily performance since mid-January 2024, falling 2.6% on Tuesday. 
Shares of Alibaba Group Holding Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) trading in Hong Kong fell 3.3%, while JD.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) fell over 7% ahead of Wednesday&#8217;s earnings report. 
Chart: Onshore Chinese Stocks Surge, While Foreign-Accessible Hang Seng Index Falls 
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/05094551/image-1-3-1024x495.png" alt="" class="wp-image-239556" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/05094551/image-1-3-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/05094551/image-1-3-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/05094551/image-1-3-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/05094551/image-1-3-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/05094551/image-1-3.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Read now: <a href="https://www.benzinga.com/news/large-cap/24/03/37469946/gold-breaks-above-2-110-inches-closer-to-record-high-with-rallying-mining-stocks">Gold Breaks Above $2,110, Inches Closer To Record High, With Rallying Mining Stocks</a>
Photo: Shutterstock

Econ #s

Markets

China's 2024 Economic Targets Drive Wedge Between Domestic And Offshore Equities

Chinese stocks trading in the U.S. market witnessed a notable decline on Tuesday, even as the People&#8217;s Bank of China (PBoC) took steps to bolster its <a href="https://www.benzinga.com/topic/china">faltering real estate sector.</a>
What Happened: The bank cut the five-year prime loan rate by 25 basis points to 3.95% on Tuesday, surpassing expectations of a modest 15 basis points reduction. 
This marks the most substantial rate cut since the introduction of the five-year loan prime rate in 2019. It also represents the first-rate reduction since June 2023.
China maintains the one-year rate at 3.45%, contrary to the anticipated 15 basis points decrease, setting both rates at historical lows.
Why It Matters: Beijing&#8217;s reducing interest rates and releasing more liquidity are an attempt at revitalizing the real estate sector.
Recall how Evergrande defaulted in 2021. The collapse led to a cash crisis across China's real estate sector. Today, Evergrande has over $300 billion in liabilities.
China's southern province of Hainan recently reduced the down-payment ratio for first-time homebuyers <a href="https://www.benzinga.com/markets/asia/24/02/37203536/chinas-hainan-province-eases-mortgage-rules-to-revive-home-sales-housing-bottom-not-in-sight-analyst">from 25% to 20%.</a> 
Market Reaction: The iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) experienced a decrease of 0.8%. The iShares MSCI Hong Kong ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWH#NYSE">EWH</a>) saw a reduction of 1%. Among individual stocks, e-commerce giant JD.com Inc. experienced the most significant drop, declining by 4.4%. 
Electric vehicle company Nio Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NASDAQ">NIO</a>) also faced a substantial decrease of 3.8%, reflecting broader market pessimism towards EV manufacturers.
Other prominent Chinese companies, including Baidu Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>), Alibaba Group Holding Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), and PDD Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>), also encountered declines.
The downturn in Chinese equities was partly attributed to the broader negative trends impacting U.S. tech stocks Tuesday. Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) experienced a more than 5% drop ahead of its earnings release, prompting investors to reassess high valuations. 
The Federal Open Market Committee (FOMC) minutes on Wednesday and forthcoming remarks from Federal Reserve officials are expected to provide clues on the potential timeline for U.S. interest rate reductions. 
Currently, money markets are leaning towards a cumulative rate cut of one percentage point in 2024. The expectation is for four quarter-point reductions. That&#8217;s a revision from the previously anticipated five cuts before a recent <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37203996/why-these-2-wall-street-economists-not-too-concerned-by-januarys-hot-inflation-main">hotter-than-expected inflation report.</a>
Now Read: <a href="https://www.benzinga.com/news/earnings/24/02/37213218/walmart-q4-performance-revenue-and-eps-surprise-dividend-hike-vizio-buyout-and-more">Walmart Q4 Performance: Revenue And EPS Surprise, Dividend Hike, VIZIO Buyout And More</a>
Image: Shutterstock

Equities

BIDU

NVDA

Citigourp Global Markets 2% Protected Notes Linked To The Djia

TSLA

Chinese Stocks Decline Despite Aggressive Banking Move To Revitalize Troubled Property Sector

China&#8217;s southern province of Hainan has announced a reduction in the down-payment ratio for first-time homebuyers. 
This policy adjustment, making it easier for individuals to purchase their first homes, sets the minimum down payment at 20%, a decrease <a href="https://www.benzinga.com/topic/china">from the previous 25%</a>. 
The announcement, first revealed by Hainan Daily and then reported by <a href="https://www.bloomberg.com/news/articles/2024-02-19/china-s-hainan-cuts-down-payment-for-first-home-buyers?srnd=economics-v2&amp;sref=TBDibEcD">Bloomberg</a>, follows similar easing measures in major cities like Beijing and Shanghai, aiming to counteract the country&#8217;s significant housing sales slump.
Stabilizing the Market Amidst a Housing Downturn
The adjustment comes amid a series of relaxations in mortgage policies across the nation, aimed at boosting slumping home sales. These efforts have seen a notable increase in home sales in Beijing and Shanghai after the implementation of reduced down-payment ratios and the easing of qualifications for lower mortgages.
However, the overall real estate market in China continues to face challenges, with the new-home market experiencing subdued sales. This is contrasted by a surge in transactions of existing homes during the Spring Festival holiday, although daily average sales of new homes in 25 major cities have seen a significant decrease of 27% by area compared to the previous year.
This policy change in Hainan, which had previously reduced the down-payment requirement from 30% to 25% in October, underscores the ongoing efforts to address the unprecedented downturn in the housing market. With a population of 10 million, Hainan&#8217;s move is part of a wider strategy to inject vitality into the real estate sector and provide a pathway for recovery.
Goldman Sachs Weighs In: A Prolonged Housing Downturn
In a note published Sunday, Goldman Sachs&#8217; chief China economist Hui Shan said that the Chinese housing bottom is still &#8220;not in sight.&#8221; 
According to Shan, the current housing downturn in China, when compared to the U.S. 2007-09 subprime crisis, reveals that real house prices nationwide have declined by 16% from the third quarter of 2021 to the third quarter of 2023. 
This decrease represents approximately half of the peak-to-trough decline experienced during the U.S. crisis. Despite the fundamental differences between the housing markets of the two countries, Shan emphasizes that housing downcycles tend to persist for years. 
The economist underscores the importance of policy interventions to mitigate negative spillovers, such as foreclosures and financial stresses in the U.S., and developer defaults and local government spending cuts in China&#8217;s context.
On Monday, the Hong Kong&#8217;s Hang Seng Index, a barometer for offshore Chinese stocks and monitored through the iShares MSCI Hong Kong Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWH#NYSE">EWH</a>), fell over 1% after surging as much as 2.5% on Friday. 
Read now: <a href="https://www.benzinga.com/markets/asia/24/02/37197714/chinas-domestic-tourism-spending-outpaces-pre-pandemic-levels-during-lunar-new-year-celebrations">China&#8217;s Domestic Tourism Spending Outpaces Pre-Pandemic Levels During Lunar New Year Celebrations</a>
Image created using photos from Shutterstock.

REIT

Emerging Markets

China's Hainan Province Eases Mortgage Rules To Revive Home Sales: 'Housing Bottom Not In Sight,' Analyst Says

Emerging markets fund manager Mark Mobius on Friday offered his take on the underperforming Chinese and <a href="https://www.benzinga.com/24/02/36935323/weekly-market-recap-volatility-in-hong-kong-us-earnings-surge-fed-influences-bonds">Hong Kong markets </a>and potential investment opportunities.
Turning The Corner? People have now begun comparing the Chinese and Hong Kong markets with India, which has seen a huge run-up, and see there is an opportunity for the former two to outperform, said Mobius, the founder of Mobius Capital Partners. The emerging-market investment guru <a href="https://www.bloomberg.com/news/videos/2024-02-09/mobius-some-china-stocks-started-meeting-his-criteria-video">shared</a> his views in an interview with Bloomberg.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14033054/newplot-51.png" alt="" class="wp-image-215313" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14033054/newplot-51.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14033054/newplot-51-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Source: Benzinga
&#8220;I am not predicting that but I think people are beginning to look at the valuations and beginning to think that perhaps it&#8217;s gonna be a good opportunity there,&#8221; the investment manager said. 
Delving into the criteria for screening stocks, Mobius said his firm uses return on assets and return on capital, which he termed as very important. He also said he would look into earnings per share growth. 
&#8220;We like companies with low debt,&#8221; Mobius said.
&#8220;Some of the stocks in China and Hong Kong are beginning to beat on some of those criteria.&#8221;
See Also: <a href="https://www.benzinga.com/24/02/36935323/weekly-market-recap-volatility-in-hong-kong-us-earnings-surge-fed-influences-bonds">Best Chinese Stocks</a>
Mobius also disagreed with the view that the weakness in Hong Kong and China is due to Chinese authorities&#8217; problems with their messaging to the global markets. &#8220;Chinese officials are trying their best to regain confidence,&#8221; he said. 
&#8220;At the end of the day, it is the Chinese investors who drive the Chinese market, not foreign investors, so the first order of business will be for them to instill confidence in Chinese investors&#8217; minds.&#8221;
Mobius sees a return of confidence among Chinese investors once the housing problem is over but he cautioned that it will take some time. He said that Chinese investors have a lot of money in their property more than in the stock market. If the property situation improves, then money would go flowing into the stock market, he added.
Given the ailing property market and disinflation in China, the appropriate strategy for investors in the domestic market is to keep an eye on the U.S. interest rate, the fund manager said. The possibility of the Fed cutting rates is positive for emerging markets generally, and for China as well, because one of the problems is the higher interest rates Chinese property investors have to face.
EM Index Vs. Individual Stocks: Mobius said he wouldn&#8217;t buy an emerging market index but would look at individual markets. The emerging markets index has performed so badly because of China, he said. Even if one were to consider an index, it should be an emerging market index, excluding China, he added.
But Mobius warned about the demerits of leaving out China. &#8220;China may pick up and then you lose that opportunity. But I pick individual stocks to begin with,&#8221; he said. &nbsp;
While sharing the interview on X, formerly Twitter, Mobius elaborated his views further. &#8220;As the Chinese saying goes, &#8216;where there is risk, there is opportunity,&#8217; Whenever a stock market takes a dive, one thing comes to my mind: time to go shopping for hidden gems at a steal,&#8221; he said.
&#8220;With Hong Kong's market at a multi-year low, I&#8217;m starting to see value in some local stocks.&#8221;
Why It&#8217;s Important: China, one of the biggest drivers of global economic growth, has been hampered further by the stock market downturn. Sensing the lurking danger, Chinese authorities have orchestrated their willingness to implement measures to prop up the stock market that has been spiraling downward.
U.S.-listed Chinese large-cap stocks such as Alibaba Group Holding Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), JD.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>), Baidu, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>), and Tencent Holdings Limited (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) took a hit even ahead of the domestic stock market swoon.
Threatened by the massive scale of operation of these companies, the Communist regime took steps to rein them in, as they were seen to be monopolizing the business areas they were operating in. <a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/07/28270934/alibaba-down-9-5-as-chinese-regulators-pressure-jack-ma-to-cede-control-of-ant-fina">Alibaba, for one, has been feeling the pinch since mid-2020.</a>
<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14033958/newplot-52.png" alt="" class="wp-image-215324" style="width:800px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14033958/newplot-52.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14033958/newplot-52-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Source: Benzinga
The domestic stock market swoon has stalled any fightback by these stocks despite their oversold levels.
The iShares MSCI China A ETF (CBOE: CNYA) ended Friday down 0.42% at $24.88 and the iShares MSCI Hong Kong ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWH#NYSE">EWH</a>) fell 1.73% to $15.92, according to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro data.</a>
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37028937/is-chinas-stock-market-poised-for-a-turnaround-analyst-points-to-3-promising-signs-">Is China&#8217;s Stock Market Poised For A Turnaround? Analyst Points To 3 Promising Signs Amid Policy Shifts</a>
Image via Shutterstock

Analyst Color

Media

Trading Ideas

CNYA

TCEHY

Emerging Markets Guru Says 'Time To Go Shopping For Hidden Gems At A Steal' As He Sees Opportunities In Bruised Chinese, Hong Kong Stocks

A Hong Kong court handed down a liquidation order against China Evergrande Group on Monday, initiating the dissolution of what was once China&#8217;s <a href="https://www.benzinga.com/markets/asia/24/01/36818748/chinas-evergrande-shares-halted-as-hong-kong-court-orders-liquidation-of-worlds-most-indebted-develo">biggest real estate developer.</a>
This move signals a critical turning point for the debt-laden giant, sparking spillover concerns across the financial community.
Evergrande&#8217;s shares took an immediate hit following the court&#8217;s ruling, plummeting 21% to just 16 cents in Hong Kong dollars before a suspension in trading. This significant drop in share price is a far cry from its 2017 peak market value of HK $414 billion, now dwindled to merely HK $2.15 billion. 
Evergrande CEO Shawn Siu said &#8220;the company has made all efforts possible and is sorry about the winding-up order." He maintained a commitment to clients and the company's continuity, emphasizing, "The company will ensure home deliveries and steadily promote normal operation of the group." Siu also confirmed plans to work alongside the appointed liquidator in managing the fallout.
Alvarez &amp; Marsal Inc. stepped in as the appointed overseer, a firm recognized for handling Lehman Brothers&#8216; restructuring.
Evergrande&#8217;s Fallout: Assessing The Economic Impact
The decision, while not unforeseen, sends a chilling message to the markets and the property sector in China, which is already navigating turbulence.
According to Andreas Steno Larsen, an independent macro economist, the court ruling on Evergrande was largely anticipated given the company&#8217;s well-documented financial woes.
&#8220;This ruling doesn't come as a surprise to the markets,&#8221; Larsen said, adding that the government&#8217;s reluctance to intervene in the company's $300-billion debt crisis has been mirrored in Evergrande's declining share price. He anticipates Beijing will likely introduce additional policy measures and economic incentives to alleviate market instability.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">FREE Evergrande Update&#8230; Popping the World's Largest Asset Bubble.. Evergrande has now formally transitioned from a state of de facto default to a legal liquidation. How will the markets and Beijing act to the latest ruling? More -&gt; <a href="https://t.co/Y8cV8Pb6Gc">https://t.co/Y8cV8Pb6Gc</a> <a href="https://t.co/2Rh1uDlPDi">pic.twitter.com/2Rh1uDlPDi</a>
&mdash; AndreasStenoLarsen (@AndreasSteno) <a href="https://twitter.com/AndreasSteno/status/1751953439783846399?ref_src=twsrc%5Etfw">January 29, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Bloomberg reported the negative news is expected to impact the already shaky confidence of Chinese homebuyers, who are increasingly hesitant to invest in new homes from private developers due to <a href="https://www.bloomberg.com/news/articles/2024-01-29/what-does-evergrande-s-liquidation-order-mean-quicktake-q-a?sref=TBDibEcD">fears of incompletion.</a>
Gary Ng, a senior economist at Natixis SA, highlighted the broader implications of the liquidation, noting its likely psychological impact. 
&#8220;The macroeconomic impact should be limited as the liquidation itself is unlikely to exert more pressure on the battered property sector,&#8221; Ng explained, but cautioned, &#8220;It will worsen sentiment as investors will be worried about a snowball effect on other pending cases.&#8221;
Crispus Nyaga, a financial analyst from Invezz, weighed in on the discussion with a forward-looking view, specifically addressing the situation of another troubled property developer, Country Garden. He stated that &#8220;Country Garden is in a similar situation that Evergrande was in before its collapse,&#8221; indicating that due to its heavy debt and poor ratings from credit agencies, it's likely that Country Garden might also face liquidation in the coming months. 
Market Reactions
The fallout from the Evergrande liquidation hasn&#8217;t triggered substantially negative reactions across Chinese-related assets so far, suggesting that investors might have already factored in the potential consequences.
Hong Kong&#8217;s Hang Seng Index, often a barometer for investor sentiment toward Chinese offshore entities and tracked by the iShares MSCI Hong Kong Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWH#NYSE">EWH</a>), closed 0.8% higher on Monday. 
Conversely, mainland Chinese shares experienced a slight dip, with the Shanghai Shenzhen CSI 300 Index falling by 0.9%. This modest drop may reflect more localized concerns about the impact of Evergrande&#8217;s liquidation on the domestic market, albeit without widespread panic.
As for Chinese companies listed in New York, the premarket trading session paints a mixed picture. E-commerce titan Alibaba Group Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) edged up by 0.7%, while the retailer giant PDD Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) saw a sharper decline of 3.3%. 
Other major firms like JD.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>), electric vehicle maker NIO Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>), and tech giant Baidu Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NYSE">BIDU</a>) remained mostly flat. 
Read now:<a href="https://www.benzinga.com/markets/asia/24/01/36758819/chinese-stocks-rally-as-beijing-goes-all-in-on-financial-support-squeezes-short-sellers"> Chinese Stocks Rally As Beijing Goes All-In On Financial Support, Squeezes Short Sellers</a>
Photo via Shutterstock.

Asset Sales

Analyst Ratings

Evergrande Liquidation's 'Snowball Effect': What's Next For China's Troubled Real Estate Sector?

<a href="https://www.ft.com/content/28983bdc-2a38-4103-beae-08d9542ab69d" title="https://www.ft.com/content/28983bdc-2a38-4103-beae-08d9542ab69d">https://www.ft.com/content/28983bdc-2a38-4103-beae-08d9542ab69d</a>

Financing

MSFT

Financial Times Reported Elon Musk's AI Start-Up Seeks To Raise $6B From Investors To Challenge OpenAI

Chinese equities recorded their most robust performance on Wednesday in several months, buoyed by Beijing&#8217;s commitment to inject financial stimulus into the weakened economy and implement regulations designed to restrict short selling of <a href="https://www.benzinga.com/topic/china">the nation&#8217;s entities.</a>
This uptick follows rumors that emerged on Tuesday about the government&#8217;s plans to deploy approximately 2 trillion yuan ($279 billion), largely sourced from state enterprises&#8217; offshore accounts, with the aim of bolstering equity purchases via <a href="https://www.benzinga.com/markets/asia/24/01/36738324/chinas-market-rescue-a-bold-278-billion-stabilization-plan-in-play-amid-deepening-crisis">a stock connect link</a>.
<h3 class="wp-block-heading">What Happened: Bold Moves to Stimulate the Economy</h3>
The People&#8217;s Bank of China (PBOC) announced a reduction in the reserve requirement ratio (RRR) for all banks by 50 basis points, bringing it down to 10% effective Feb. 5. This move is expected to inject up to one trillion yuan ($139.45 billion) into the market, marking the lowest RRR level since March 2007. This strategic decision aligns with the PBOC&#8217;s ongoing efforts to bolster the economic recovery amid declining stock markets.
Additionally, the China Securities Regulatory Commission (CSRC) has reportedly been in talks with several hedge fund managers, pressing them to limit short selling in the <a href="https://www.benzinga.com/markets/asia/24/01/36752362/chinas-securities-regulators-urge-hedge-funds-to-curb-short-selling-amid-market-turmoil-report">stock index futures market.</a> According to Reuters, short interest on U.S.-listed Chinese stocks and Hong Kong stocks has seen a sharp decline, dropping 15% in the 30 days leading up to Jan. 22, as per data from S3 partners.
Hong Kong shares of Alibaba Group Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) saw a remarkable increase of 7.9% on Tuesday, reaching their highest level since Jan. 4. This surge followed reports of substantial share purchases by co-founder Jack Ma and Chairman Joe Tsai in the fourth quarter. Consequently, the company&#8217;s U.S.-listed shares experienced a near 8% jump on Tuesday.
<h3 class="wp-block-heading">Why It Matters: A Market In Recovery Might Be In Sight</h3>
The Chinese stock market has experienced a substantial decline, losing about a third of its value in the past year. Currently, it stands as one of the most undervalued markets globally, based on traditional valuation metrics. The forward price-to-earnings ratio for the iShares MSCI Hong Kong Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWH#NYSE">EWH</a>) is now at 11x, significantly lower than its historical average.
Read also:<a href="https://www.benzinga.com/markets/asia/24/01/36719713/januarys-bargain-hunt-this-chinese-asset-is-up-for-sale-at-a-30-discount-trap-or-treasure"> January&#8217;s Bargain Hunt: This Chinese Asset Is Up For Sale At 30% Discount — Trap Or Treasure?</a>
Kiyong Seong, Societe Generale&#8217;s lead Asia macro strategist, acknowledges the unexpected scale of the 50 bp cut but suggests a cautious approach, waiting for a comprehensive set of policy supports to assess their overall market impact. Ihor Dusaniwsky, managing director of predictive analytics at S3, points out a trend of continued short covering, hinting at a potential short-term recovery in Chinese markets.
<h3 class="wp-block-heading">Market Reactions: Chinese Stocks Soar</h3>
Following these announcements, the Hong Kong Hang Seng Index, a gauge for offshore Chinese stocks, rallied as much as 3.6% on Wednesday, adding to a 2.6% surge on Tuesday. 
This marks the strongest 2-day performance since November 2022. The domestic Chinese shares, as indicated by the CSI 300 Index, also witnessed a rise of 1.4%.
Chart: Hong Kong Index Marks Strongest 2-Day Rally Since November 2022
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/24094645/HSI_2024-01-24_13-46-32_64309-1024x495.png" alt="" class="wp-image-192543" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/24094645/HSI_2024-01-24_13-46-32_64309-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/24094645/HSI_2024-01-24_13-46-32_64309-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/24094645/HSI_2024-01-24_13-46-32_64309-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/24094645/HSI_2024-01-24_13-46-32_64309-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/24094645/HSI_2024-01-24_13-46-32_64309.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
In premarket trading on Wednesday, the Franklin FTSE Hong Kong ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FLHK#NYSE">FLHK</a>) showed an 8.2% increase, while the iShares MSCI Hong Kong Index Fund and the iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) rose by 2.5% and 3.8% respectively.
Shares of Alibaba Group Holdings Ltd. saw a 2% increase. Similarly, Baidu Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) shares were up by 2.8%, following a 7.5% gain the previous day.
Read now: <a href="https://www.benzinga.com/news/24/01/36752515/us-seeks-chinas-support-in-curbing-iran-backed-houthi-attacks-in-red-sea-but-beijing-remains-silent">US Seeks China&#8217;s Support In Curbing Iran-Backed Houthi Attacks In Red Sea, But Beijing Remains Silent</a>
Photo: Shutterstock

Government

Regulations

Short Sellers

FLHK

Chinese Stocks Rally As Beijing Goes All-In On Financial Support, Squeezes Short Sellers

&#8220;Enough is enough.&#8221; This is likely the sentiment that Chinese authorities should have expressed recently, given the sharp drop in their country&#8217;s stock market value over the past year, coupled with Hong Kong-traded stocks plummeting to levels not seen since <a href="https://www.benzinga.com/markets/asia/24/01/36719713/januarys-bargain-hunt-this-chinese-asset-is-up-for-sale-at-a-30-discount-trap-or-treasure">the summer of 2009.</a>
What Happened: Chinese authorities are reportedly preparing a substantial rescue package to stabilize the floundering stock market. Insiders familiar with the matter revealed to <a href="https://www.bloomberg.com/news/articles/2024-01-23/china-mulls-stock-market-rescue-package-backed-by-278-billion?srnd=premium&amp;sref=TBDibEcD">Bloomberg</a> that Chinese policymakers intend to assemble a stabilization fund of about 2 trillion yuan ($278 billion). 
This fund will primarily draw from the offshore accounts of Chinese state-owned enterprises and aims to purchase shares onshore through the Hong Kong exchange link. 
Additionally, at least 300 billion yuan of local funds will be channeled to invest in onshore shares via entities like China Securities Finance Corp. and Central Huijin Investment Ltd.
Read Also: <a href="https://www.benzinga.com/news/earnings/24/01/36734767/us-stocks-prepare-for-nervy-start-ahead-of-netflix-ti-earnings-analyst-says-cash-waiting-on-sidelin">US Stocks Prepare For Nervy Start Ahead of Netflix, TI Earnings: Analyst Says Cash Waiting On Sidelines Could Flood Street If This Happens</a>
Why It Matters: This move underscores a heightened sense of urgency among Chinese officials to curb a market selloff that pushed the benchmark CSI 300 Index to a five-year low. 
Foreign investors have unmistakably exited the Chinese equity market, as evidenced by the more pronounced declines in Chinese stocks traded on the Hong Kong&#8217;s Hang Seng index compared to domestic shares. 
The establishment of a stabilization fund could be perceived as a lifeline during this protracted crisis, potentially serving as a much-needed turning point. 
Bloomberg Intelligence strategist Marvin Chen suggests that while the proposed support package might stabilize markets in the short term, sustained improvement will require additional measures.
<h3 class="wp-block-heading">Chinese Stocks Rally</h3>
Hong Kong&#8217;s Hang Seng index, as tracked by the iShares MSCI Hong Kong Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWH#NYSE">EWH</a>), witnessed a substantial surge of 2.6%, marking its most robust performance since mid-November. 
Onshore Chinese stocks, represented by the CSI 300 index, closed with a modest gain of 0.4%. Simultaneously, the offshore yuan strengthened by 0.4% against the US dollar. 
In premarket trading Wednesday, Chinese stocks listed on US exchanges showed significant increases, with Alibaba Group Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) rising by 3%, PDD Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) by 2.5%, Baidu Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) by 2.8%, NIO Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NASDAQ">NIO</a>) by 3.9%, and Li Auto Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>) by 4.5%.
Read Now: <a href="https://www.benzinga.com/economics/macro-economic-events/24/01/36732969/chinas-growth-stumbles-but-it-still-offers-enormous-advantages-for-investors-says">China&#8217;s Growth Stumbles But It Still Offers &#8216;Enormous Advantages&#8217; For Investors, Says Expert</a>
Image: Shutterstock

China's Market Rescue: A Bold $278 Billion Stabilization Plan In Play Amid Deepening Crisis

China, the world&#8217;s second-largest economy by gross domestic product (GDP), is grappling with a crisis in its domestic real estate sector and spillover effects have cast a shadow over the performance of <a href="https://www.benzinga.com/topic/china">its offshore stock market.</a>
What Happened: BlackRock Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) is speeding up the sale of an office complex in Shanghai at a 30% discount to its purchase price due to the sluggish property market in the Chinese largest city.
The property, Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-01-22/blackrock-tries-to-sell-shanghai-office-towers-at-30-discount?sref=TBDibEcD">reported</a>, consists of two towers at Waterfront Place. It was purchased in 2018 from PGIM Real Estate for approximately 1.2 billion yuan ($167 million). It is part of a real estate investment fund managed by BlackRock and offers 27,805 square meters (299,290 square feet) of office space. 
New home prices in China experienced their sharpest decline in December, marking the largest drop since February 2015, as Reuters reported last week. 
Additionally, property sales, measured by floor area, saw a significant 23% decrease in December compared to the same period in the previous year.
Read Also: <a href="https://www.benzinga.com/news/24/01/36711124/nvidia-ceo-jensen-huang-reportedly-makes-first-china-visit-in-four-years-amid-escalating-tech-rivalr">Nvidia CEO Jensen Huang Reportedly Makes First China Visit In Four Years Amid Escalating Tech Rivalry With US</a>
<h2 class="wp-block-heading">Chinese Offshore Shares Widen Discount To Onshore Counterparts</h2>
Offshore-listed Chinese stocks are often considered a more accurate indicator of the health of China&#8217;s economy and broader investor sentiment. These stocks listed in both Hong Kong and New York have recently experienced a significant widening of their discount when compared to stocks listed domestically in Shanghai or Shenzhen, reflecting a widespread pessimism on Chinese equities available to global investors. 
Redmond Wong, a market strategist at Saxo Capital Markets HK Ltd., told <a href="https://www.bloomberg.com/news/articles/2024-01-22/china-stock-selloff-worsens-as-hong-kong-index-nears-19-year-low?srnd=premium&amp;sref=TBDibEcD">Bloomberg</a> that a considerable number of investors in Hong Kong-listed stocks, known as H shares, are overseas institutional funds. Many of these funds have shifted their investments away from Hong Kong to other Asian markets, including Japan.
Over the past year, both the iShares MSCI Hong Kong Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWH#NYSE">EWH</a>) and the iShares MSCI China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NYSE">MCHI</a>) have seen declines by a third of their value. These two benchmarks for Chinese stocks are currently trading at their lowest levels since 2011.
The relative strength of the Hang Seng Index, a key indicator of Hong Kong-listed stocks, compared to the Chinese domestic CSI 300 index — which tracks the performance of the top 300 stocks traded on the Shanghai and Shenzhen Stock Exchanges — has now reached levels not seen since April 2009. 
When compared to the 5-year average level, offshore Chinese stocks currently trade at a 36% discount compared to their domestic onshore counterparts, highlighting a significant performance gap between these two market segments.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/22114147/HSI_000300_2024-01-22_15-41-24_78165-1024x495.png" alt="" class="wp-image-189724" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/22114147/HSI_000300_2024-01-22_15-41-24_78165-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/22114147/HSI_000300_2024-01-22_15-41-24_78165-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/22114147/HSI_000300_2024-01-22_15-41-24_78165-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/22114147/HSI_000300_2024-01-22_15-41-24_78165-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/22114147/HSI_000300_2024-01-22_15-41-24_78165.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
This contrast is also prominently observed when examining individual stocks. 
The two largest constituents of the CSI 300 index are Kweichow Moutai Ltd (600519) and Ping An Insurance (Group) Of China (601318). The two firms experienced smaller declines over the year: Kweichow Moutai down 13% and Ping An Insurance was down 23%. 
In contrast, the two largest offshore stocks, Tencent Holding Ltd (OTCPK: TCEHY) and Alibaba Group Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), have seen more substantial declines of 33.6% and 43.2%, respectively.
Read Now: <a href="https://www.benzinga.com/markets/asia/24/01/36654679/trump-says-chinas-stock-market-crashed-after-i-won-iowa-but-analyst-differs-i-dont-think-the-drop-is">Trump Says China&#8217;s Stock Market &#8216;Crashed&#8217; After &#8216;I Won Iowa,&#8217; But Analyst Differs</a>

January's Bargain Hunt: This Chinese Asset Is Up For Sale At 30% Discount — Trap Or Treasure?

Asian indexes were mixed after major Wall Street earnings

China's factory activity returns to expansion in October

U.S. Job Report May Offer Little Relief Ahead Of Next Week's Election And Meetings By Half Of The G10 Central Banks

Comments

iShares MSCI Hong Kong Index Fund

Notizie

Ultime notizie per iShares MSCI Hong Kong Index Fund (ARCA:EWH)

Notizie

PARTNER/COLLABORATORE

BENZINGA NEL MONDO