Clocktower Group’s Post

China moves to stabilize capital market, improve confidence China has sent a clear signal that more efforts will be made to stabilize the capital market and improve investor confidence. Policymakers were briefed on the operation of the capital market and considerations for related work at a State Council meeting on Monday. The country will further improve the capital market's fundamental system, pay more attention to maintaining a dynamic balance between investment and financing, enhance the quality and investment value of listed companies, increase flows of medium and long-term funds into the market, and strengthen the market's inherent stability, according to the meeting. The meeting reflects the great significance the authorities attach to the development of the capital market and investors' concerns, said Peng Wensheng, chief analyst with the China International Capital Corporation. #capitalmarket #CSRC #governmentdebts

“Long-time China investors are betting the nation is poised to recover its momentum even as tensions with the U.S. have left it uninvestable in the eyes of many in the West. Investors including Fang Fenglei, the founder and chairman of private equity firm Hopu, and Fred Hu, the founder and chief executive officer at Primavera Capital Group, both struck an optimistic tone on the country’s long-term growth at the Milken conference in Hong Kong on Tuesday despite challenges brought on by the real estate downturn and U.S. geopolitical tensions. Goodwin Gaw, the founder of Gaw Capital Partners, said China is at a pivot point for restructuring its real estate sector. He added that the reduced interest in China creates opportunities. ‘So, when the world thinks the second-largest economy is uninvestable there will be opportunities,’ Gaw also said at the conference.” “Investors have navigated challenging terrain over the past few years as China has cracked down on broad swaths of its private sector. At the same time, U.S. sanctions have caused a rush of divestments in China and cuts to allocations into the world’s second-largest economy. Foreign businesses’ new direct investment into China slumped to a 30-year low in 2023, with top officials vowing to focus on luring overseas capital this year. But the flip side is also true, according to Fang, who said Chinese investors have also grown ‘disillusioned’ with the U.S. ‘For China, the most important thing is still to work on itself well,’ he said. While China struggled to gain momentum last year, the picture has been more upbeat at the start of this year. Exports have picked up and industrial production and investments have beaten expectations.” “Still, economists say more policy support is needed to reach the ambitious economic growth target of around 5% this year. Despite the Biden administration’s ‘small yard, high fence’ policy curbs against China in core technology and military sectors, Fang said that the country’s abundant talent, deep markets and capital mean it will still grow. His words were echoed by Hu who joined him on the same panel, arguing that China is now rebalancing its economy to become more consumer focused even though it will be painful in the short-term. Hu said that whether Biden or Trump get a second presidential term, the U.S.’s China policy will stay the same. ‘It’s really up to the Chinese themselves, their policies, consumers and entrepreneurs’, he said. ‘If China gets that right, then the U.S. will become less relevant.’”

China is set to regain its allure for #GlobalInvestors in 2024 despite ongoing economic concerns, predicts financial advisory firm deVere Group founder and chief executive officer Nigel Green. Green's optimistic outlook follows Beijing’s additional financial support for the country’s beleaguered #PropertyMarket and developers, including hard-hit Country Garden, announced yesterday. Shenzhen, China’s main industrial hub, has also unveiled new homebuying measures to further support the sector critical to China's economy. More at #Proactive #ProactiveInvestors #ChineseStocks #ChineseInvestment http://ow.ly/1htA1053qE9

Chinese policymakers are seeking to mobilise about CN¥ 2 trillion (approximately US$278 billion), mainly from the offshore accounts of Chinese state-owned enterprises.  This fund is intended to buy shares onshore through the Hong Kong exchange link. They have also earmarked at least CN¥300 billion of local funds to invest in onshore shares through China Securities Finance Corp. or Central Huijin Investment.   The deliberations underscore the elevated sense of urgency among Chinese authorities to stem a sell-off that sent the benchmark CSI 300 Index to a five-year low this week.  Calming the nation’s retail investors, many of whom have been bruised by the protracted property downturn, is also seen as key to maintaining social stability. The formation of a state-backed stabilisation fund has been contemplated since at least October, though some investors have raised doubts over its efficacy, as Beijing’s previous rescue efforts have not always worked.   China’s property crisis, depressed consumer sentiment, tumbling foreign investment, and diminished confidence among local businesses after years of volatile policymaking are exerting pressure on both the economy and markets. This rescue package is a significant move by the Chinese authorities to stabilise the stock market and restore investor confidence.  However, its success will depend on a variety of factors, including the effectiveness of the measures implemented, the response of investors, and the overall economic conditions. Terence Nunis Terence K. J. Nunis, Consultant Chief Executive Officer, Equinox GEMTZ

The Chinese Government, through state-backed institutions, is backing China-exposed/based ETFs in an attempt to avoid uncontrolled capital outflows. Is this "bridge" intervention sustainable until (and if) China goes back to his growth path? It seems to me that cutting regional deficit might not work if the central government has to implement expensive programs like this one. It would be great to hear your thoughts on the matter.

Chinese policymakers are seeking to mobilise about CN¥ 2 trillion (approximately US$278 billion), mainly from the offshore accounts of Chinese state-owned enterprises.  This fund is intended to buy shares onshore through the Hong Kong exchange link. They have also earmarked at least CN¥300 billion of local funds to invest in onshore shares through China Securities Finance Corp. or Central Huijin Investment.   The deliberations underscore the elevated sense of urgency among Chinese authorities to stem a sell-off that sent the benchmark CSI 300 Index to a five-year low this week.  Calming the nation’s retail investors, many of whom have been bruised by the protracted property downturn, is also seen as key to maintaining social stability. The formation of a state-backed stabilisation fund has been contemplated since at least October, though some investors have raised doubts over its efficacy, as Beijing’s previous rescue efforts have not always worked.   China’s property crisis, depressed consumer sentiment, tumbling foreign investment, and diminished confidence among local businesses after years of volatile policymaking are exerting pressure on both the economy and markets. This rescue package is a significant move by the Chinese authorities to stabilise the stock market and restore investor confidence.  However, its success will depend on a variety of factors, including the effectiveness of the measures implemented, the response of investors, and the overall economic conditions. Terence Nunis Terence K. J. Nunis, Consultant Chief Executive Officer, Equinox GEMTZ

Chinese policymakers are seeking to mobilise about CN¥ 2 trillion (approximately US$278 billion), mainly from the offshore accounts of Chinese state-owned enterprises.  This fund is intended to buy shares onshore through the Hong Kong exchange link. They have also earmarked at least CN¥300 billion of local funds to invest in onshore shares through China Securities Finance Corp. or Central Huijin Investment.   The deliberations underscore the elevated sense of urgency among Chinese authorities to stem a sell-off that sent the benchmark CSI 300 Index to a five-year low this week.  Calming the nation’s retail investors, many of whom have been bruised by the protracted property downturn, is also seen as key to maintaining social stability. The formation of a state-backed stabilisation fund has been contemplated since at least October, though some investors have raised doubts over its efficacy, as Beijing’s previous rescue efforts have not always worked.   China’s property crisis, depressed consumer sentiment, tumbling foreign investment, and diminished confidence among local businesses after years of volatile policymaking are exerting pressure on both the economy and markets. This rescue package is a significant move by the Chinese authorities to stabilise the stock market and restore investor confidence.  However, its success will depend on a variety of factors, including the effectiveness of the measures implemented, the response of investors, and the overall economic conditions. Terence Nunis Terence K. J. Nunis, Consultant Chief Executive Officer, Equinox GEMTZ

Just a few years ago, lucrative business prospects in China on the back of a booming economy led to a scramble among Western financial firms, from investment banking to asset management, to expand their footprints and source talent from across the world. But as doubts grow about China's economic recovery and its markets lag global peers, many of the financial firms are taking a hit on their earnings and are reining in their ambitions for what was a key piece of their global growth strategy. https://lnkd.in/gJYnYGNR

After years of fast expansion, China is shifting towards high-quality development via its latest roadmap, with its government setting the groundwork for further opening of the country’s capital market through a series of supportive policies. In our research we focus on China’s equity market and review its constant evolution, growth and diversification across sectors and industries, offering reasonable growth adjusted valuations. We also provide insight into how investors can gain full exposure to China via the FTSE China A50 Index and FTSE China 50 ecosystem. View the report here: https://lseg.group/3Roqfjx #ChinaA50 #China50 #FTSEChinaIndices #China #InvestChina

If you're interested in what is happening in China - this article was just published from East Capital Group by our experts on-the-ground! It gives a great overview of the investment landscape for Chinese equities among other insights.