360° Coverage : China Stocks Ready For Lift-Off

10 Updates

China Stocks Ready For Lift-Off

May 12 2014, 7:49am CDT | by

Chinese equities are ready for lift-off, at least for now. Thanks to surprisingly good economic data out of Beijing, the biggest China exchange traded fund is on the rise early on Monday.  The...

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11 weeks ago

China Stocks Ready For Lift-Off

May 12 2014, 7:49am CDT | by

Chinese equities are ready for lift-off, at least for now.

Thanks to surprisingly good economic data out of Beijing, the biggest China exchange traded fund is on the rise early on Monday.  The iShares FTSE China (FXI) ETF was up nearly 2% in the pre-market hours.

The morning rally follows comments from President Xi Jinping over the weekend reiterating the recent message that while China is unlikely to resort to significant new stimulus measures, the government will work to avoid any significant downside risks.  The market has heard this before, however, but it seemed to come in louder and clearer on Monday thanks to better trade figures.

Focus now shifts to the usually monthly raft of data. The April money supply data, reported this morning, showed new loans slightly below consensus at 774 billion yuan compared to consensus estimates of 800 billion yuan.


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Youku Tudou, China’s  Youtube, was one of the best performing stocks early Monday as economic data keeps China investors happier than usual.

Better-than-expected April trade data, following last week’s uptick in the manufacturing PMI, supports the view that the first quarter was more likely a bottoming out of China’s quarterly growth rate.  Both exports and imports rose around 1% on a yearly basis, an improvement from the 6.6% and 11.3% declines, respectively, in March.

Exports by destination show a broad-based recovery, led by shipments to both Europe and the U.S., China’s biggest markets.

As base effects from last year’s cooked trade numbers dissipate, export figures should start looking better providing the U.S. and Europe remain on an even keel and Asian economies continue growing.

Stronger exports have also driven a larger than expected trade surplus of $18.5 billion, up from $7.7 billion in March.

However, the cooling of China’s property market since the start of 2014 poses significant downside risks to growth, Barclays Capital analysts led by Jian Chang said in a note this weekend.  Home sales growth has slowed sharply. After barely staying flat over January-February, residential floor space contracted by 5.7% over the last three months ending in March, the worst performance since the second quarter.

Official data for China’s 70 major cities show that average new home price inflation fell to an eight-month low in March. And more cities are reporting price decreases, a trend also seen in 2011.  This actually bodes well for investors who see housing as a sore spot for China.  For some long term China investors, a controlled cooling of China’s housing market is better than a continual heating up of property values.

“Our baseline scenario is still for a gradual deflating of the (housing) bubble over 2014 and 2015,” says Chang.  She sees housing impacting China’s GDP growth however.  She lowered their 2015 growth forecast to 7.2% from 7.4% and kept their below-consensus growth forecast for this year at 7.2%.

Other hot China equities this morning include Youku Tudou, up 3.05% in the pre-market and China Mobile, up over 1.12%.

See: China Property Market Enters Autumn Years – China Daily

China’s April Trade Data Upbeat – WSJ

China In Worse Shape Since 2012 – Bloomberg

 
Update
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat was ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken into by robbers. ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk Seri Hishamm ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the southern states last mon ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 mill ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datu ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

8 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocation of RM20 milli ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

8 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Baz ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

8 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrar ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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