Hang Seng Index

Hong Kong Stocks Extend Losses Amid Middle East Flare-Up; Luye Pharma Proposes Debt Offering

Hong Kong stocks extended losses Thursday as a flare-up in Middle East tensions hurt risk appetite.The Hang Seng Index fell by around 379.81 points, or roughly 1.5%, to end at 25,253.40, while the Hang Seng China Enterprises Index decreased by 94.68 points, or around 1.1%, to close at 8,501.91.Renewed hostilities between the US and Iran jolted investor confidence across Asian markets Thursday, Reuters reported. The overnight clashes, which involved Kuwait and Bahrain, mark the most significant escalation since a ceasefire took effect in early April and threaten to undermine ongoing US-Iran talks over extending the truce and reopening the Strait of Hormuz.Elsewhere, China slammed the U.S. for alleging the use of forced labor in the country as a pretext for additional tariffs."There is no such thing as 'forced labor' in China, and we oppose using this as a pretext for political manipulation," Beijing's Foreign Ministry Spokesperson Mao Ning said in a regular press briefing.The Office of the United States Trade Representative recently proposed additional taxes on imports from 60 regions, including China and Hong Kong, over forced-labor trade practices, calling for a 10% additional tariff for economies that have partially enforced bans on the importation of certain forced labor goods, and a 12.5% tariff for all others.In local development, Hong Kong's Exchange Fund is seeking investment managers for a mandate tied to the S&P 500 Index, Bloomberg News reported.The HK$4.3 trillion fund has been reviewing proposals in recent months and is looking for a low-tracking-error strategy that closely mirrors the benchmark's performance, according to the report.In corporate news, Luye Pharma (HKG:2186) proposed issuing $180 million of 5.25% convertible bonds due 2031 and concurrently repurchasing its outstanding $180 million 6.25% convertible bonds due 2028.The company's shares closed nearly 15% lower.

Hang SengHKG:2186

Hang SengShanghai Composite^SZSE

China Slams Proposed US Tariffs, Denies Forced Labor Claims

China denied the presence of forced labor in the country, slamming the U.S. for using probes on the issue as a pretext for additional tariffs, Beijing's Foreign Ministry Spokesperson Mao Ning said Wednesday."There is no such thing as 'forced labor' in China, and we oppose using this as a pretext for political manipulation," Mao said in a regular press briefing.Beijing has "consistently opposed all forms of unilateral tariff measures," Mao said.She also called on the U.S. to use dialogue to resolve trade issues.Section 301 inquiries by the U.S. found that 60 economies, including China and Hong Kong, failed to impose forced import prohibitions, according to a report by the U.S. Trade Representative released June 2.Following the investigation, the USTR proposed a 12.5% tariff on China, among other countries mentioned in the report.

SG Micro Moves Closer to Hong Kong IPO

SG Micro (SHE:300661) published its post-hearing information pack on the Hong Kong bourse's website as part of its H-share offering and Main Board listing process.The move followed a listing hearing on May 14, according to a Thursday filing with the Shenzhen bourse.Shenzhen shares of the integrated circuit manufacturer rose 3% in recent trade.

Hang SengSHE:300661

Market Chatter: Hong Kong Exchange Fund Eyes S&P 500 Tracking Mandate

Hong Kong's Exchange Fund is seeking investment managers for a mandate tied to the S&P 500 Index, Bloomberg News reported Wednesday, citing people familiar with the matter.The HK$4.3 trillion fund has been reviewing proposals in recent months and is looking for a low-tracking-error strategy that closely mirrors the benchmark's performance, according to the report.Bloomberg said the mandate forms part of the fund's manager review process, with the size of any allocation yet to be determined.The Exchange Fund is managed by the Hong Kong Monetary Authority.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Fitch Ratings Affirms Li & Fung's Long-term Credit Rating Following New Advent Acquisition

Fitch Ratings on Wednesday affirmed Li & Fung's long-term credit rating at "BB" after the Hong Kong-based logistics and supply chain company announced an agreement to acquire 55% of New Advent Global for about $250 million.The ratings agency also affirmed L&F's senior unsecured rating at "BB."Fitch said the rating was supported by the company's "unique position as a leading global sourcing and trading platform."The outlook on the rating was stable, reflecting the agency's expectation the acquisition will bolster L&F's business profile.

Hang SengNikkei 225Shanghai Composite

International13d ago

AI Optimism Elevates Asian Stock Markets

Asian stock markets largely rallied on Wednesday amid optimism regarding artificial intelligence-related shares, following rallies in peer issues overnight on Wall Street. Concerns regarding Persian Gulf hostilities were shrugged off.Shanghai and Tokyo finished in the green, while Hong Kong lagged. Other regional exchanges finished higher, but with trading floors in Bangkok and Seoul closed on holiday.In Japan, the Nikkei 225 opened higher and rose to the close, finishing up 2.5% as investors again leaned into semiconductor-sector enterprises.The benchmark Nikkei 225 rose 1,667.89 to 68,402.13, striking a fresh apex, as gaining issues outnumbered losers 163 to 60.Leading the upside was semiconductor-manufacturing equipment maker Screen, up 17.9%, while software-quality tester Shift fell 12.2%.In economic news, Japan's composite purchasing managers index (PMI), a combination of the nation's manufacturing and services sectors, logged at 51.1 in May, down from 52.2 in April, but still notched above the 50-marker that separates growth from contraction.In Hong Kong, the Hang Seng Index opened lower and declined thereafter, finishing off 1.6% as traders mulled better investment opportunities in mainland shares or other markets. Mainland China-listed exchange-traded funds (ETFs) that target Hong Kong-listed equities logged a record $3.69 billion in outflows last week, according to news service Bloomberg.The broad gauge Hang Seng fell 405.11 to 25,633.21, as losing issues outnumbered gainers 76 to 13. The Hang Seng TECH Index lost 2.7% on the day, while the Mainland Properties Index fell 1.6%.Leading the upside was state-owned conglomerate CITIC, gaining 2.3%, while Wuxi Biologics declined 7%.On the mainland, the Shanghai Composite rose 0.2% to 4,083.97.In economic news, mainland China's composite purchasing managers output index registered at 54.0 in May, up from 53.1 in April, reported S&P Global/Rating Dog.On the other regional exchanges, the Taiwan TWSE inclined 2%; the Australian ASX 200 inclined 0.7%; and the Singapore Straits Times Index rose 0.8%. In late trading in Mumbai, the Sensex was down 0.4%The MSCI All Country Asia Pacific Index rose 0.6% on the day.

Hong Kong Stocks Retreat Amid Outflows; Beijing Shougang LanzaTech Soars in Debut

Hong Kong stocks retreated Wednesday as outflows from the city to mainland exchanges weighed on investor sentiment.The Hang Seng Index fell by around 405.11 points, or 1.6%, to end at 25,633.21, while the Hang Seng China Enterprises Index decreased by 166.38 points, or 1.9%, to close at 8,596.59.Goldman Sachs Group on Wednesday downgraded its rating on H shares to market-weight, citing the Hong Kong market's four-month underperformance against onshore peers, Bloomberg News reported.The downgrade came amid a broad sell-off from mainland investors who appeared to be investing in semiconductors and other AI-linked shares in China.Mainland-listed ETFs that invest in Hong Kong equities pulled 25 billion yuan from the city's market last week, the largest weekly outflow on record and a reversal from last year's steady inflows, according to Bloomberg data.Meanwhile, the U.S. proposed additional taxes on imports from 60 economies, including China and Hong Kong, over forced-labor trade practices, the Office of the U.S. Trade Representative said.The USTR has proposed a 10% additional tariff for economies that have partially enforced bans on the importation of certain forced labor goods, and a 12.5% tariff for all others, according to the release from the office.In corporate news, Chinese carbon capture firm Beijing Shougang LanzaTech Technology (HKG:2553) soared in its Hong Kong debut. The firm's shares closed at HK$21.06, 44% above the offer price of HK$14.60.

Hang SengHKG:2553

^BSE^HNX^HOSEHang Seng^JKSEFTSE Bursa Malaysia KLCIKOSPINikkei 225^NSE^PSEI^SETShanghai Composite^STI^SZSETaiwan Weighted

Several Asian Countries Face Additional US Tariffs Over Forced-Labor Trade Practices

Several Asian countries could soon face additional duties on some of their exports to the U.S. following Washington's probe into imports produced using forced labor, the Office of U.S. Trade Representative (USTR) said Tuesday.The USTR said Bangladesh, Cambodia, China, Hong Kong, India, Japan, Malaysia, the Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, Indonesia, Pakistan, and Vietnam are among the 54 economies that have failed to impose and effectively enforce a forced-labor import ban.The USTR proposed a 10% additional tariff for economies that have partially enforced bans on the importation of certain forced-labor goods and a 12.5% tariff for the rest.

Hong Kong SFC Warns Firms of Rising AI-Driven Cyber Threats

Hong Kong's Securities and Futures Commission urged licensed firms to strengthen cybersecurity measures against emerging threats enabled by advanced artificial intelligence models, according to a circular issued Tuesday.The regulator warned that rapid advances in AI could enable more frequent and sophisticated cyberattacks, including phishing, social engineering, deepfake impersonation, and large-scale attacks targeting interconnected systems.The SFC called on licensed firms, particularly internet brokers and virtual asset trading platforms, to enhance safeguards for client information and assets.The regulator also urged firms to review areas including vulnerability management, threat detection, monitoring, incident response, and recovery to enhance cyber resilience.

Hang SengHKG:1211HKG:9618SHE:002594

Market Chatter: BYD, JD.com-Backed PaXini Technology Mulls Hong Kong IPO

PaXini Technology, a Chinese developer of dexterous robotic hands and humanoid robots, is weighing an initial public offering in Hong Kong, Bloomberg News reported Wednesday, citing people familiar with the matter.The BYD (HKG:1211, SHE:002594)- and JD.com (HKG:9618)-backed company is working with advisers and could submit a listing application in the coming months, according to the report.Key details, including the size and timing of the offering, are still under discussion and have yet to be finalized, Bloomberg said.PaXini raised more than 1 billion yuan in a March funding round, valuing the company at more than 10 billion yuan, the report added.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Market Chatter: Chinese Service Robot Maker Pudu Robotics Eyes Hong Kong Listing

Chinese service robot maker Pudu Robotics is preparing for a Hong Kong listing, Nikkei Asia reported Wednesday, citing founder and chief executive Felix Zhang.Speaking on the sidelines of the Beyond Expo technology exhibition in Macau, Zhang said the listing would support the company's international expansion, though he did not provide a timetable, according to the report.Zhang reportedly added that the overseas markets account for the majority of Pudu's business, with Europe and the U.S. contributing about 60% of revenue, compared with less than 20% from China.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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US Markets13d ago

Asian Banking Sector Surges Past Automobiles to Lead May Activity Growth, S&P Global Survey Finds

Most Asian business sectors expanded in May, with banking overtaking the automobile industry, according to the S&P Global Asia Sector PMI released on Wednesday.Leading the upturn for the first time in seven months, the banking sector expanded at its second-steepest rate in over five and a half years. The growth follows a previous S&P Global forecast warning that credit losses in the Asia-Pacific banking sector could surge by approximately $180 billion due to the ongoing conflict in the Middle East.The automobile sector, last month's top performer, slipped to second place, though its pace of growth remained historically high.Of the 18 sectors monitored, only forestry and paper products, alongside construction materials, recorded a contraction in new orders; however, these declines were softer than in the previous month. In contrast, the transportation sector posted the strongest surge in new orders, despite looming concerns over U.S.-Iran negotiations.Volatility persists in the energy and oil industries due to the precarious state of U.S.-Iran talks aimed at ending the Middle East conflict."Oil prices received a boost yesterday as talks between the US and Iran appeared to break down -- again. This has become a common pattern in recent months, and there are still plenty of mixed messages," ING'S Warren Patterson and Ewa Manthey said in a Tuesday note. "As a result, oil prices continue to be whipsawed by quickly changing headlines."Operating expenses increased across all 18 sectors. S&P Global highlighted that real estate recorded a renewed rise in input prices, while the chemicals sector posted the sharpest cost inflation rate.All sectors increased their selling prices except for the consumer services sector.

US Markets13d ago

Hong Kong's Private Sector Returns to Growth in May, S&P Global Says

Hong Kong's private sector returned to growth in May, supported by stronger export demand and a modest increase in new orders, S&P Global said Wednesday.The seasonally adjusted S&P Global Hong Kong SAR Purchasing Managers' Index rose to 50.4 in May from 48.6 in April.The reading moved back above the 50-point threshold that separates expansion from contraction and marked the first improvement in business conditions in three months.Business activity expanded modestly during the month, with construction emerging as the strongest-performing sector.New orders also returned to growth territory, supported by stronger overseas demand, while export orders recorded their fastest increase in three months.Some firms attributed higher sales to new product launches, although others continued to report weak domestic demand and intense competition.Usamah Bhatti, economist at S&P Global Market Intelligence, attributed the return to growth to modest increases in business activity and new orders, supported by stronger overseas demand despite ongoing weakness in local market conditions.Despite the recovery in demand, employment continued to decline as firms reported sufficient capacity to handle workloads and chose not to replace departing staff.Firms also reported a deterioration in supplier performance, with some linking delivery delays to shipping disruptions caused by the conflict in the Middle East.Cost pressures remained elevated during the month. Purchasing costs rose at the fastest pace since December 2021, driven largely by higher raw material prices, particularly fuel-related products.Many firms passed higher costs on to customers through price increases, although some offered discounts to support sales, resulting in a slower pace of output price inflation than in April.Looking ahead, firms remained pessimistic about business prospects over the next 12 months, although negative sentiment eased to a three-month low.The survey's elevated cost pressures come as Hong Kong officials expect inflation to accelerate in the coming months.Hong Kong's annual inflation rate stood at 1.7% in April, unchanged from the previous two months and the highest level since May last year.Financial Secretary Paul Chan Mo-po said the Middle East conflict has so far had only a limited impact on local inflation, citing Hong Kong's service-based economy and stable energy supplies from mainland China."Rising international oil prices will continue to feed through to consumer prices and fuel-related products," Chan told lawmakers on Monday."However, as Hong Kong is a service-oriented economy with relatively low energy dependency, and with stable energy supplies from the mainland, the external impact can be mitigated," he added.The government revised its 2026 forecasts for underlying and headline inflation last month to 2.5% and 2.6%, respectively, from 1.7% and 1.8%.

International13d ago

Hong Kong's Private Sector Rebounds in May, S&P Global Says

Hong Kong's private sector activity expanded in May, S&P Global showed Wednesday.The latest seasonally adjusted S&P Global Hong Kong SAR Purchasing Manager's Index stood at 50.4, compared with 48.6 in the previous month.Output prices increased moderately in May, while new orders also rebounded, owing to more demand for companies' goods and services in foreign markets.

^BSE^HNX^HOSEHang Seng^JKSEFTSE Bursa Malaysia KLCIKOSPINikkei 225^NSE^PSEI^SETShanghai Composite^STI^SZSETaiwan Weighted

International13d ago

Banking Sector Growth Fastest Among 18 Broader Asian Sectors in May, S&P Data Shows

Banking sector growth was the fastest among the 18 broader Asian sectors in May, with activity expanding at the strongest pace in seven months, S&P Global said in a Wednesday release.Output growth was recorded across 16 of the 18 monitored Asian sectors last month, which was unchanged from April. Only the forestry and paper products, and construction materials sectors incurred declines from April, along with lower new orders received, S&P said.New orders rose across the remaining 16 sectors last month, led by the transportation sector.Employment increased in 10 of 18 sectors, with software & services and technology equipment experiencing the strongest hiring, while insurance witnessed a cutdown in employed staff.

US Markets14d ago

Autos, Luxury Goods Lift Hong Kong Retail Sales in April

Boosted by sales of autos, jewelry and watches, Hong Kong retail activity extended gains in April, reported the Census and Statistics Department (C&SD) on Tuesday.Hong Kong retail sales rose 8.6% on year in April, after logging a revised 12.8% gain in March. For the first four months of the year, retail sales in the Special Administrative Region of Hong Kong rose 11.3% on year, added the C&SD.After adjustment for inflation, Hong Kong retail sales in April increased by 6.4% from a year earlier.The sale of jewelry, watches, clocks, and valuable gifts rose 19.8% on year in April in Hong Kong, long regarded as one of the Asia Pacific's luxury shopping meccas.Also posting strong results in April were retail sales of motor vehicles and parts, up 46.1% on year, and sales of electrical goods and other consumer durable goods not elsewhere classified, up 21.9% on year, reported officials.Separately, the number of inbound tourists to Hong Kong in April reached 4.22 million, up 9.7% on year, recently reported the Hong Kong Tourism Board.In Hong Kong, online retail sales increased by 30.6% on year in April, and accounted for 9.7% of total sales, according to the C&SD.The expectation, at least in official quarters, was for a continuation of strong retail sales in Hong Kong."Looking ahead, the retail sector should continue to benefit from ongoing economic expansion, notable increase in inbound visitors and resilient consumption sentiment. The government will stay alert to the downside risk arising from the evolving geopolitical tensions and their possible effects on the local consumption market," said the C&SD, in a prepared statement.

Hang SengNikkei 225Shanghai Composite

International14d ago

Tech Bulls Shrug Off Geopolitics on Asian Stock Markets

Asian stock markets largely gained on Tuesday as traders shrugged off geopolitics and rallied around AI and tech shares.Hong Kong and Shanghai finished in the green, although Tokyo lagged. Other regional exchanges were mixed on the upside, with fresh all-time zeniths set on equity indices in Seoul and Taiwan.In Japan, the Nikkei 225 opened lower and could not recover, finishing off 0.3% as traders booked profits from recent record-shattering rallies.The benchmark Nikkei 225 fell 200.09 to 66,734.24, as losing issues outnumbered gainers 144 to 77.Leading the upside was glassmaker AGC, up 9.1%, while Nippon Electric Glass declined 10%.In Hong Kong, the Hang Seng Index opened evenly and rose to the close, concluding up 2.5% on AI-sector optimism.The broad gauge Hang Seng rose 640.14 to 26,038.32, as gaining issues outnumbered losers 60 to 30. The Hang Seng TECH Index gained 4.7% on the day, while the Mainland Properties Index rose 0.7%.Leading the upside was WeChat operator Tencent, gaining 10.5% on reports it is testing an AI agent for its social-media platform. Laopu Gold declined 3%.On the mainland, the Shanghai Composite rose 0.4% to 4,075.10.On the other regional exchanges, the S. Korean KOSPI rose 0.2%; the Taiwan TWSE inclined 0.5%; the Australian ASX 200 declined 0.1%; the Singapore Straits Times Index rose 1.2%, and the Thai Set inclined 1.3%. In late trading in Mumbai, the Sensex was up 0.5%.The MSCI All Country Asia Pacific Index rose 0.6% on the day.

International14d ago

Hong Kong's Retail Sales Value Climbs 8.6% in April

Hong Kong logged an 8.6% annual growth in total retail sales value in April at HK$31.4 billion, compared with HK$34 billion in the previous month, provisional government data showed Tuesday.The Hong Kong Census and Statistics Department added that year-to-date sales from all retail outlets were up 11.3% on an annual basis.