China ADRs, miners, casino shares leap as Beijing launches fresh stimulus measures
By Lisa Pauline Mattackal and Nikhil Sharma
Sept 24 (Reuters) -U.S.-listed shares of Chinese firms jumped on Tuesday, along with China-focused exchange-traded funds, casino companies and commodity-linked stocks, as Beijing's largeststimulus measures since the pandemic raised hopes of renewed growth.
The People's Bank of China unveiled a raft of policy measures, including interest rate cuts, a reduction in mortgage rates and new tools to boost capital market funding in a bid to revive demand in the world's second-largest economy.
E-commerce firms Alibaba Group BABA.N, JD.com JD.O and PDD Holdings PDD.O were among some of the top gainers on Wall Street, rising between 5.4% and 8%.
Chinese auto manufacturers Nio NIO.N and Li Auto LI.O gained about 7% each, while shares of Tencent Music Entertainment Group TME.N soared 14%.
Mining stocks also jumped as metal prices rose on hopes of increased demand. The S&P 500 materials sector .SPLRCM rose 1% to a record high, with miner Freeport-McMoran FCX.N rising over 6% to top the S&P 500 .SPX.
Shares of casino operators Wynn Resorts WYNN.O and Las Vegas Sands LVS.N, which have a substantial presence in Macau, rose 4% and 5.6%, respectively, while Estee Lauder EL.N rose 5.6%, tracking global luxury shares on hopes of renewed consumer demand in the key Chinese market.
Exchange-traded funds tracking Chinese markets also gained ground, with the iShares MSCI China ETF MCHI.O up 6.4% after the blue-chip CSI300 .CSI300 index notched its best day in four years. The KraneShares CSI China Internet ETF KWEB.K jumped nearly 7% to an over two-month high.
Investors have been wary of Chinese assets this year because of faltering growth, weak consumer demand, a severe downturn in the property market and the prospect of renewed trade tensions with the U.S.
The CSI 300 has slipped more than 2% year-to-date, versus a 15.8% rise in world stocks .MIWD00000PUS.
"If people are looking for opportunity, they may take a flyer on Chinese stocks because they've been so beaten down, this may prove to be a good short-term opportunity," said Jay Woods, chief global strategist at Freedom Capital Markets.
The MCHI ETF has seen net outflows of over $2 billion over the past year, currently holding around $4.3 billion in assets under management, as per VettaFi data.
MORE STIMULUS AHEAD?
Global brokerages including Goldman Sachs and Citigroup cut their 2024 China economic growth forecasts earlier this month, with Citigroup citing the necessity for more fiscal stimulus.
Despite the latest measures,uncertainty remains over whether the stimulus is sufficient enough to drive growth, with several analysts expecting policymakers to step in again.
"This would seem to be much closer to the beginning of stimulus than the end of stimulus," said Colin Cieszynski, chief market strategist at SIA Wealth Management.
Reporting by Lisa Pauline Mattackal in Bengaluru; Editing by Anil D'Silva
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
