Better-than-expected data on Chinese exports failed to impress investors, focusing on weak domestic demand reflected in slowing imports. Imports increased Analysts are concerned that May sales rose just 1.8 percent, compared with last month’s 8.4 percent increase.
“The data shows that China’s economic recovery is fragile and the issue of weak demand still needs to be addressed,” said Song Yiwei, an analyst at Bohai Securities in Tianjin. “June will be an opportunity for investors to observe the effectiveness of all support measures, especially those for the property market. A recovery in high-frequency data or signs of new reforms will boost market expectations and drive prices further up.”
The “Shenxing” fast-charging lithium iron phosphate (LFP) battery made by Chinese EV battery maker Contemporary Amperex Technology Co., Ltd. (CATL) is displayed during a press preview at the 2023 International Motor Show (IAA) in Munich, Germany, on September 4, 2023. Photo: Xinhua
Bank of America expects Chinese stocks to remain range-bound in the coming weeks as investors await new impetus from June macroeconomic data, an update on housing transactions and the Communist Party’s third plenary session, which could chart the course for long-term reforms and economic policy. Technical analysts at trading firm Oanda said Hong Kong stocks are likely to trade in a range-bound manner. Expand your horizons The run-up.
A meteoric rally that began in January launched the Hong Kong market into a bull market that’s showing signs of stalling, with recent sluggish real estate data showing signs of stalling despite a Chinese rescue package aimed at salvaging the struggling real estate sector. Home sales in 33 major cities fell 42% this year through June 4 from a year earlier, according to Bank of America, barely improving on a 44% decline for the year to date through the end of April.
“So far, the scale of policy support has been insufficient to make a difference, but more support is expected to come,” analysts led by Goldman Sachs’ Yi Wang said in a report this week.
Chinese electric vehicle (EV) maker Lee Auto fell 1.1 percent to HK$78.10 on concerns that a rival acquisition would increase competition in the industry. Nio The company posted a quarterly loss. NIO, which is not a component of the Hang Seng index, fell 7.2 percent to HK$38.25. PC maker Lenovo Group Inc. dropped 6.8 percent to HK$10.64, and machine-tool maker Techtronic Industries Ltd. dropped 2.8 percent to HK$97.05.
Contemporary Amperex Technology Co., the world’s largest maker of lithium-ion batteries for electric vehicles, fell 5.7 percent to 193.20 yuan in Shenzhen after U.S. lawmakers made a proposal to buy the Chinese company. blacklist Because of human rights concerns.
Three companies listed on the stock market on Friday. In Hong Kong, Jiangxi Ricoh Group rose 0.1% from its IPO price to HK$15, while Yixiang Technology Holdings surged 92% to HK$11.12. In Shenzhen, Ningbo Lian Technology Co. Ltd. rose 349% to HK$127.
Other major Asian markets were broadly higher: South Korea’s KOSPI rose 1.2% and Australia’s S&P/ASX 200 rose 0.5%, while Japan’s Nikkei fell 0.1%.
