China markets team leader, senior correspondent, Shanghai, China
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May 22, 2015

China stocks jump to 7-year high, led by financials; Hong Kong up too

SHANGHAI, May 22 (Reuters) – China stocks jumped to fresh
seven-year highs on Friday morning, and looked set for their
biggest weekly gain in two months, as investors raised bets that
a month-long consolidation period is ending.

The CSI300 index rose 1.6 percent to 4,919.89
points at the end of the morning while the Shanghai Composite
Index gained 1.9 percent, to 4,617.02 points. Both
indexes were on track to post weekly gains of nearly 7 percent.

May 21, 2015

Reform takes back seat as China drives muni debt swap

SHANGHAI (Reuters) – China’s plan to help local governments swap their debt for bonds might avert a funding crunch for the provinces and help its slowing economy, but it risks suspending reform of its dysfunctional credit markets just to push the debt problem down the road.

The swap is a response to a problem partly of Beijing’s own making.

Concerned about explosive growth in the murky shadow banking sector, regulators cracked down on unconventional forms of financing, which many local government financing vehicles (LGFV) relied on to run up debts of more than $3 trillion dollars, much of it on ill-advised or vanity projects.

May 21, 2015

Rate liberalisation nears completion, market looks now for guidance

SHANGHAI, May 21 (Reuters) – China could fully liberalise
its interest rate regime as early as July and almost certainly
by the year-end, according to money market traders gearing up
for the change.

The People’s Bank of China’s (PBOC) earlier this month
raised the maximum that banks may set their deposit rates at
from the official benchmark to 1.5 times.

May 21, 2015

China stocks rise again, with ChiNext still soaring; Hong Kong flat

SHANGHAI, May 21 (Reuters) – China stocks remain bullish
Thursday morning, despite a weak factory activity survey, with
Shenzhen’s start-up board staying in the spotlight with a more
than 3 percent jump to fresh highs.

Chinese factory activity contracted for the third month in
May and output shrank at the fastest rate in just over a year,
China May flash HSBC factory PMI showed.

May 20, 2015

Russell Investment, Ping An say ended China joint venture

SHANGHAI/HONG KONG (Reuters) – Russell Investment Management and China’s Ping An Insurance Group said they have terminated their investment joint venture after four years, the latest sign of friction between foreign fund managers and their Chinese partners.

The joint venture, launched in March 2011, was managing $1.7 billion of investments on behalf of Chinese and foreign clients as of March 2015, according to information on the venture’s website and its LinkedIn profile.

May 20, 2015

China stocks up on Shenzhen index expansion, industrial upgrade plan; HK mixed

SHANGHAI, May 20 (Reuters) – China stocks climbed on
Wednesday and looked on track to challenge seven-year highs,
energised by a surge in tech-heavy, Shenzhen-listed shares after
the city’s bourse dramaticly expanded the number of firms in a
benchmark index.

The CSI300 index of the largest listed companies
in Shanghai and Shenzhen rose 1.2 percent to 4,789.55 points by
the end of the morning session, while the Shanghai Composite
Index gained 1.3 percent to 4,476.09 points.

May 20, 2015

Shenzhen dramatically expands index to increase tech shares ahead of cross-border scheme

SHANGHAI, May 20 (Reuters) – The Shenzhen Stock Exchange on
Wednesday sharply increased the number of stocks included in a
benchmark index to 500 from 40, ahead of the planned launch of a
cross-border investment scheme between Shenzhen and Hong Kong.

The component adjustment of the Shenzhen SE Component Index
boosts the weighting of tech companies at the expense
of financial and real estate firms.

May 19, 2015

Russell Investment, Ping An end China joint venture – sources

SHANGHAI/HONG KONG, May 19 (Reuters) – After four years of
partnership, Russell Investment Management and China’s Ping An
Insurance Group have terminated their investment joint venture,
sources with direct knowledge of the situation told Reuters, the
latest sign of friction between foreign fund managers and their
Chinese partners.

Under the agreement, Chinese insurance and financial
services heavyweight Ping An will buy all of Russell’s 49
percent stake in the joint venture, while the U.S. asset manager
will continue to do business in China via a wholly owned local
entity, a source inside Russell told Reuters.

May 19, 2015

Russell Investment, China’s Ping An Insurance agree to end joint venture – sources

SHANGHAI/HONG KONG, May 19 (Reuters) – Russell Investment
Management and China’s Ping An Insurance Group
have agreed to terminate their joint
investment venture, two sources with direct knowledge of the
deal told Reuters.

Ping An has agreed to buy all of Russell’s 49 percent stake
in the joint venture via an affiliate entity controlled by
China’s second biggest insurer, a source at Russell said.

May 19, 2015

China stocks rise the most in 4 months on reform hopes

SHANGHAI, May 19 (Reuters) – China stocks jumped over 3
percent on Tuesday, their biggest one-day gain in four months,
with financial shares leading the charge after
Beijing published guidelines for economic reform that prioritise
further opening of the country’s capital market and the
restructuring of state enterprises.

The guidelines, which target areas including the
Shenzhen-Hong Kong stock connect, the initial public offering
(IPO) system and yuan globalisation, revived investor interest
in blue-chip stocks, said Tian Weidong, analyst at Kaiyuan
Securities in Xi’an.

    • About Pete

      "Pete Sweeney is Senior Markets Correspondent at Reuters, focused on bond, forex, interbank and equities markets. Previously editor of China Economic Review, a Hong Kong-based monthly magazine focused on providing news and analysis on the mainland economy. Sweeney came to China as a Fulbright scholar in 2008, and conducted research on Chinese business policy in Hangzhou, Harbin and Chengdu. He has also lived and worked in Belgium, Ecuador and the U.S. He speaks Chinese, at the expense of his Spanish."
      Joined Reuters:
      March 2012
      Languages:
      Mandarin, Spanish
      Awards:
      Fulbright Scholar
      Foreign Languages and Area Studies Scholar
      Boeing Merit Award
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