Business

Chinese shares jump as Beijing steps up moves to boost sagging markets

Published

3 months ago

February 6, 2024

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Chinese shares jump as Beijing steps up moves to boost sagging markets

A Chinese state investment fund promised to expand its purchases of stock index funds, among other moves signaling Beijing’s resolve to stabilize markets that have been sagging under heavy selling pressure from a property crisis and slowing economy.

Shares in Shanghai and Hong Kong surged Tuesday after the announcement by Central Huijin Investment, whose subsidiaries include Chinese state-owned banks. The gains accelerated after a report by Bloomberg said Chinese President Xi Jinping would meet with market regulators.

The report, citing unnamed people who spoke privately, could not immediately be confirmed. It also said the timing of the meeting was unclear.

Central Huijin has stepped up buying of shares in state-run banks and other companies to counter heavy selling pressure in the Chinese markets, which have been trading at five-year lows. However, Hong Kong’s biggest gains Tuesday were in technology companies like e-commerce giants Alibaba, which surged 7.6%, and JD.com, which added 7.8%.

The Shanghai Composite index jumped 3.2% and Hong Kong’s Hang Seng surged 4%. The Shenzhen A-Share index was 5.2% higher.

Benchmarks recovered all or most of their losses for the month, but remain far below their levels of a year earlier.

Over the weekend, the market watchdog warned it would crack down on market manipulation, insider trading and other abuses and promised to protect smaller investors who usually account for the majority of trading in Chinese markets.

Benchmarks in Shanghai and the smaller market in Shenzhen bounced between small gains and big losses on Monday, while share prices of state-run banks and other big companies rose.

The China Securities Regulatory Commission welcomed Tuesday’s announcement by Central Huijin, saying that the “historically low level” of share prices highlighted their medium and long-term investment value.

“We firmly support Central Huijin to continue to increase the scale and intensity of its holdings, and will create more convenient conditions and smoother channels for its market entry operations,” it said at a statement. It promised to “make every effort to maintain the stable operation of the market.”

It said it also would facilitate share purchases by institutional investors such as public funds, private equity funds, securities companies, social security funds, insurance institutions, and annuity funds and encourage companies to increase share repurchases.

In a separate notice, the CSRC urged companies to step up mergers and acquisitions and restructuring to enhance the value of listed companies to “strengthen a sense of gains among investors.”

“A large number of listed companies have improved quality, efficiency, and become better and stronger through mergers, acquisitions and reorganizations,” it said.

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Business

Chinese firm aims to expand investments in Pakistan, shows interest in mining sector

Published

1 day ago

May 17, 2024

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Chinese firm aims to expand investments in Pakistan, shows interest in mining sector

A notable Chinese company has expressed keen interest in expanding its investment in Pakistan, in yet another sign of investor confidence boost in the leadership of Prime Minister Shehbaz Sharif.

A delegation from Chinese firm MCC Tongsin Resources led by its Chairman Wang Jaichen called on PM Shehbaz here on Friday.

The premier invited the Chinese company to invest in Pakistan’s mining sector and manufacturing of export goods.

Shehbaz assured the delegation that his government would extend all-out facilitation to the company from minerals exploration and processing to the export of goods.

The PM instructed the relevant federal ministers and officers to continue consultation with the Chinese firm, taking the Balochistan chief minister, provincial departments and stakeholders on board.

The delegates reposed trust in PM Shehbaz’s leadership, and expressed keen interest in enhancing their investment in Pakistan’s mining and minerals sectors.

The delegation briefed Prime Minister Shehbaz about the construction of a mineral park in Pakistan and their future investment plans.

The premier welcomed the Chinese firm and highlighted the priority steps by his government to promote foreign investment in Pakistan.

He said that being a time-tested friend, China supported Pakistan in every difficult hour for which the Pakistani nation was grateful to the leadership and people of China.

Federal ministers Ahad Khan Cheema, Dr Musaddik Malik, Rana Tanveer Hussain, Jam Kamal Khan and relevant senior officers attended the meeting.

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Business

Govt jacks up power price by Rs1.47 per unit

Published

1 day ago

May 17, 2024

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Govt jacks up power price by Rs1.47 per unit

The government on Friday increased the electricity tariff by Rs1.47 per unit.

According to Nepra sources, the collection from consumers will take place in August, September, and October.

The electricity companies had requested the funds as part of the third quarter adjustment for 2023-2024, seeking Rs 31.34 billion under capacity charges.

Sources said that Rs5.57 billion were requested for operation and maintenance costs, and Rs12.38 billion were requested for the transmission and distribution impact under monthly fuel cost adjustment.

Previously, Nepra had completed the hearing on the electricity companies’ request under the quarterly adjustment.

Nepra approved the Power Division’s request, allowing an increase of Rs 1.45 per unit in electricity prices.

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Business

Hong Kong allows China’s digital yuan to be used in local shops

Published

1 day ago

May 17, 2024

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Hong Kong allows China's digital yuan to be used in local shops

Hong Kong will allow mainland China’s pilot digital currency to be used in shops in the city, the head of its de facto central bank said on Friday, marking a step forward for Beijing’s efforts to internationalise the yuan amid rising geopolitical tensions.

The programme, backed by Beijing, will allow mainland Chinese and Hong Kong residents to open digital yuan wallets via a mobile app developed by China’s central bank and will permit them to make payments in retail shops and some online stores in Hong Kong and in mainland China.

Transactions using e-CNY, predominantly for domestic retail payments in China, hit 1.8 trillion yuan ($249.27 billion) as of end of June 2023, with 120 million digital wallets opened, according to the latest disclosure from China’s central bank.

Using the wallet, users can make payments at over 10 million merchants in 17 provinces and cities in the mainland.

Each wallet used in the city will be subject to a balance limit of 10,000 yuan, with single transactions and daily payments capped at 2,000 yuan and 5,000 yuan, respectively, officials from the Hong Kong Monetary Authority said.

Peer-to-peer transfers will not be allowed at the moment, according to the HKMA.

“By expanding the e-CNY pilot in Hong Kong .. users may now top up their wallets anytime, anywhere without having to open a mainland bank account, thereby facilitating merchant payments in the mainland by Hong Kong residents,” HKMA Chief Eddie Yue said.

Currently, users of other digital yuan wallets such as those operated by Ant Group and Tencent can make payments in the city.

Industrial and Commercial Bank of China, Bank of China Ltd, China Construction Bank Corp and Bank of Communications Co have been selected as e-CNY wallet operators.

The yuan’s use in global finance remains low, though it has shown steady increases.

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