^SZSE

Shanghai Composite^SZSESHE:000973SHE:002180SHE:300409

Chinese Stocks End Mixed Amid Ongoing Middle East Conflict

Chinese equities were muted as investors are still cautious over the ongoing Middle East conflict and hopes of the U.S. and Iran potentially resuming negotiations.The Shanghai Composite Index moderately rose to finish Wednesday at 4,027.21. The Shenzhen Component Index, however, lost 1%, or 141.50 points, to 14,498.46.Pressure is racking among global trade partners amid the U.S. blockage of the Strait of Hormuz, with the US President Donald Trump and Chinese President Xi Jinping set to meet in the coming weeks.There are still expectations that the U.S. will conduct a second round of discussions with Tehran despite the talks in Pakistan falling apart.In corporate news, Guangdong Dowstone Technology (SHE:300409) dropped 6% despite its 2025 attributable profit surging 223% year on year to 506.8 million yuan and its first-quarter attributable profit soaring 146% from a year earlier to 107.7 million yuan.FSPG Hi-Tech (SHE:000973) dipped 4% after forecasting that its first-quarter attributable profit will surge 1,993% to 2,664% to between 530 million yuan and 700 million yuan.Ninestar (SHE:002180) jumped 6.3%, although it swung to a net loss attributable to shareholders of 718.2 million yuan, or 0.51 yuan per share, in 2025.

ASX 200Hang SengNikkei 225Shanghai Composite^SZSE

Credit Losses for Asia-Pacific Banks to Rise by $180 Billion Under Prolonged Middle East War, S&P Says

Credit losses for Asia-Pacific banks could surge by about $180 billion over the next two years under a downward scenario of a prolonged war in the Middle East, S&P Global Ratings said in a Wednesday release.Total biennial credit losses could hit $910 billion over 2026 and 2027 under this scenario, compared with $730 billion under S&P's base case.The rise in credit losses to total loans would hit Vietnam, Indonesia, and India the most under this scenario, S&P said.Under S&P's base case, banks will feel a weaker impact from the war since direct exposures to the Middle East are low and indirect ones are manageable.In a downward scenario, banks will likely be hit by secondary effects on the household, corporate, and government sectors, credit analyst Gavin Gunning said.The impact will be felt more by banks with sizable exposures to susceptible corporate sectors such as airlines, energy, chemicals, and transportation.However, S&P expects bank buffers to be resilient at current rating levels under a downside case.Of more than 400 S&P-rated financial institutions in the region, 92% have ratings with a stable outlook, while only 2.9% are negative.

China Releases Pricing Rules for Newly Market, Innovative Drugs

China released guidelines to optimize pricing for newly marketed and innovative medicines, Xinhua News Agency reported Tuesday.The General Office of the State Council's guidelines will help ensure patients have access to high-quality and reasonably priced medicines, the report said.China's guidelines for high-level innovative drugs should be priced according to their high research and development investment and high risk involved for a certain period, according to the state-owned news agency.

Market Chatter: US Treasury Chief Slams China as Unreliable Global Partner Due to Oil Hoarding

U.S. Treasury Secretary Scott Bessent called China an "unreliable global partner" amidst the war in the Middle East, Reuters reported Tuesday, citing remarks made to reporters.Bessent said China has been stockpiling more oil than needed and limiting exports, similar to how the country hoarded medical supplies during the COVID-19 pandemic, the report said."China has been an unreliable global partner three times in the past five years; once during COVID, when they hoarded healthcare products, second on (rare earths)," the publication quoted Bessent as saying.China's reserve is equivalent to the entire stockpile held by the 32 members of the International Energy Agency (IEA), Reuters said.The International Monetary Fund, World Bank, and the IEA have asked countries to stop hoarding oil and imposing export controls, but stopped short of naming countries, the report said.China has been working actively to end the hostilities and would "continue playing a constructive role," Reuters said, citing Liu Pengyu, spokesperson for the Chinese embassy in Washington.(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: Yangtze Memory Technologies to Establish Two Additional Factories Amid US Crackdown on Exports to China

Yangtze Memory Technologies (YMTC) is looking to establish two more production facilities in addition to one slated for completion in 2026, Reuters reported Tuesday, citing people familiar with the plans.The three new factories will help the company produce 100,000 wafers each per month when fully operational, the report said, citing the sources.At present, the company's two fabs can produce a combined 200,000 wafers per month, the report said.YMTC is China's largest maker of NAND flash memory chips for data storage in smartphones and computers, according to Reuters.The additional production facilities come as China is looking to wean itself off foreign technologies, including semiconductors, Reuters reported.U.S. officials have been looking to limit exports of semiconductor manufacturing tools to China, according to the newswire.(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.)

China Central Bank Performs 500 Billion Yuan of Reverse Repo Operation

The People's Bank of China on Wednesday conducted 500 billion yuan of seven-day reverse repurchase operations, according to a same-day notice.The operation used a fixed-rate, quantity-based bidding process, with an operating rate of 1.4%.

International61d ago

IMF Trims 2026 GDP Growth Outlook for China to 4.4%

The International Monetary Fund reduced its economic outlook for China to 4.4% for this year from 4.5% in its January estimate as international markets continue to grapple with the impact of the Middle East conflict, according to a Tuesday press release.The new outlook is lower than Beijing's gross domestic product growth target of between 4.5% and 5% but higher than the agency's October 2025 projection.For 2027, the IMF predicts China's GDP growth will further slow down to 4%.The agency lowered the global economic growth forecast to 3.1% for the year and 3.2% in 2027, while global headline inflation is expected to moderately climb this year."A longer or broader conflict, worsening geopolitical fragmentation, a reassessment of expectations surrounding artificial‑intelligence‑driven productivity, or renewed trade tensions could significantly weaken growth and destabilize financial markets," the IMF said.

US Markets62d ago

China's Balance of Trade Plunges in March Despite Import Surge

China's balance of trade saw a surplus of $51.13 billion in March, according to data from Customs released Tuesday.The figure was weaker compared with a $213.62 billion surplus in February and missed analsyts' estimates of $107.5 billion during the month, according to a report by Investing.com.In local currency terms, the balance of trade plunged 4.8% year over year, analysts from ING said in a note Tuesday.The plunge in local currency terms could also impact China's GDP data, due for release Thursday, ING said.Exports jumped 2.5% year over year to $321 billion during the month, Customs said. The growth rate missed a forecast of 8.3%, according to Investing.com. It is also slower compared with the 21.8% surge in the January-February period.Exports destined for the U.S. fell 14.6% year over year, but is expected to ease in the coming months, analysts from ING said."With the drag from the US expected to ease-assuming no new tariff shocks, which cannot be fully ruled out-external demand should remain an important driver of growth this year," ING said.Imports soared 27.8% year over year to $269.9 billion during the month, exceeding expectations, and up from a 19.8% rise seen in the January-February period, according to multiple media reports.The surge is attributable to higher technology product prices, which led to "stunning export growth" across the rest of Asia-Pacific, ING analysts said.Chinese semiconductor imports jumped 11% year on year year-to-date by volume and 45% year-to-date by value, according to the analysts.The figure has not taken into account the impact of the Iran war, as crude oil imports increased 8.9% year on year, year-to-date in volume terms but were down 4.7% year to date in value terms, ING said.Higher energy prices could accelerate imports further in the coming months, the bank said.The balance of trade for the quarter reached $264.3 billion.

US-Iran Truce 'Extremely Fragile,' China Top Diplomat Says

Chinese Foreign Minister Wang Yi said the truce between the U.S. and Iran is "extremely fragile" and called on the international community to oppose anything that will undermine the temporary suspension of hostilities, the ministry said Monday.Wang made the remarks during a phone call with Pakistani counterpart Mohammad Ishaq Dar, according to the ministry.The ministry said it welcomes Pakistan's role in resolving the U.S.-Iran conflict.

Market Chatter: China's Economy Rebounds in Q1 But Outlook Darkens on Global Risks

China's economy likely picked up pace early in 2026, buoyed by resilient exports, but momentum is set to fade as geopolitical tensions weigh on demand, a Reuters poll showed.Economists forecast first-quarter gross domestic product growth at 4.8% year-on-year, up from 4.5% in Q4 2025, according to the Monday report.Expansion is seen easing to 4.7% in Q2, with full-year growth at 4.6%, Reuters wrote.While energy buffers have softened the impact of the Iran crisis, higher oil prices are squeezing margins and threatening exports, the report said.(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: China Says Hormuz Blockade Threatens Global Interests

China warned that any blockade of the Strait of Hormuz would harm global interests, urging restraint as tensions escalate over Iran, Reuters reported Monday.Foreign Minister Wang Yi told U.A.E. envoy Khaldoon Khalifa Al Mubarak that diplomacy and a lasting ceasefire remain the only viable path forward, according to the report.The warning came after the U.S. Central Command announced plans to halt maritime traffic to Iranian ports following failed talks in Islamabad, Reuters wrote.Beijing backed continued negotiations and denied claims of arms supplies, calling them "groundless" and "malicious," according to the report.(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.)

Shanghai Sees Strong Growth in January-February

Shanghai's manufacturing output in artificial intelligence, integrated circuits and biomedicine surged nearly 14% in January and February.Retail sales jumped 7.2% and fixed-asset investment rose 7.4%, according to Wu Wei, executive vice mayor of Shanghai.In the first quarter, the city's foreign trade jumped 22%

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Market Chatter: Chinese AI Startups to Ditch Offshore IPO Structures

Shanghai-based artificial intelligence company StepFun is dismantling its Cayman Islands holding structure for a Hong Kong listing, as Beijing cracks down on red-chip vehicles long used for overseas fundraising, Reuters reported Monday, citing three sources.China's securities regulator recently ordered offshore-registered companies with China-based assets to unwind the setup, according to the report. StepFun, which develops general-purpose foundation models, now sees an onshore structure as more suitable due to its heavy state backing.Meanwhile, AI peer Moonshot, creator of the Kimi language model, is also reconsidering its offshore incorporation, Reuters wrote.Moonshot is raising $1 billion at an $18 billion valuation and could pursue a Hong Kong IPO later this year, according to the report.(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.)

China's Trade Balance Weakens in March

Shanghai Composite^SZSESHE:000933SHE:002046

China Stocks Jump on Potential 2nd US-Iran Talks

China's shares climbed amid hopes that the tensions between the U.S. and Iran will cool down after President Donald Trump threatened to blockade the Strait of Hormuz.The Shanghai Composite Index added 1%, or 38.07 points, to close Tuesday's trade at 4,026.63, while the Shenzhen Component Index jumped 1.6%, or 232.09 points to 14,639.95.Sentiment was uplifted amid reports that the U.S. and Iran are still communication, with the possibility of a second in-person meeting, despite failed negotiations in Pakistan. Trump said Tehran wants "to work a deal" with the U.S. amid the effectivity of the blockade.In corporate news, Sinomach Precision Industry (SHE:002046) jumped 5.8% amid its forecast that it would swing to an attributable loss of between 8 million yuan and 12 million yuan in the first quarter.Henan Shenhuo Coal & Power (SHE:000933) climbed 4.4% after its net profit attributable to shareholders in the first quarter soared 223% year on year to 2.29 billion yuan.

Market Chatter: Chinese Export Growth Hits Bump in March on Iran War Pessimism

Growth in Chinese exports are expected to have slowed to 8.6% year over year in dollar terms in March, down from 21.8% in January and February, Reuters reported Monday, citing a poll by the newswire.The deceleration could be attributable to the energy shocks driven by the Iran war and its impact on artificial intelligence enthusiasm, the report said.The war in Iran could temper expectations of tech-powered exports breaking the record $1.2 trillion surplus in 2025, according to the report.The report stated that March served as the initial assessment of AI enthusiasm's capacity to counteract energy sector pessimism, a situation exacerbated by the Strait of Hormuz closure.Stockpiling of commodities helped cushion the blow of raw-material shocks on producer prices, the report said.(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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Middle East Escalation Could Cost Asia Up to $299 Billion, UNDP Warns

The ongoing military escalation in the Middle East could inflict economic losses of up to $299 billion across Asia and the Pacific, as higher fuel, freight and input costs ripple through regional economies, UNDP's latest assessment report release Tuesday showed.The report said the shock is weakening household purchasing power, increasing food insecurity, straining public budgets and undermining livelihoods, particularly in countries heavily reliant on imported energy and food, as well as those exposed to Gulf trade routes, labor markets and remittance flows.It estimated that under a 28-day disruption scenario, regional output losses could range between $97 billion and $299 billion, equivalent to 0.3% to 0.8% of GDP, with South Asia facing the most pronounced impact.Around 8.8 million people across 14 countries could fall into poverty, including more than 5 million in Iran, where the poverty rate may rise from 36% to 41.5%, according to the simulations.The report, prepared as of April 9, draws on inputs from 22 UNDP country offices covering 36 countries, alongside modelling and external data. It noted that outcomes will depend heavily on the duration and intensity of the conflict, with risks rising further if disruptions persist.

China's Outstanding Total Social Financing Rises 8% as of End-March

China's outstanding total social financing rose 7.9% year on year to 456.5 trillion yuan as of the end of March, the People's Bank of China said in a press release published late Monday.Among these are outstanding renminbi-denominated loans, which climbed 5.8% from a year earlier to 277.3 trillion yuan, accounting for 60.7%, and outstanding foreign currency loans, which declined 5.3% to 1.120 trillion yuan, accounting for 0.2% of the total social financing.Outstanding government bonds, which accounted for 21.6% of social financing, recorded the biggest increase, jumping 15.9% year on year to 98.5 trillion yuan. It was followed by outstanding corporate bonds, which climbed 7.9% to 35.2 trillion yuan.Meanwhile, the total social financing during the first quarter declined by 354.5 billion yuan to 14.8 trillion yuan.Renminbi-denominated loans also rose by 8.6 trillion yuan, with the outstanding balance of renminbi-denominated loans rising 5.7% to 280.51 trillion yuan.

China Posts 8.5% Rise in March Broad Money Supply

China's broad money supply climbed 8.5% year on year to 353.9 trillion yuan in March, according to data from the People's Bank of China.Narrow money supply climbed 5.1% to 119.3 trillion yuan, while currency in circulation balance rose 13% to 14.7 trillion yuan.Net cash injection in the first quarter was 613.5 billion yuan.