Bloomberg: China Mobile plans to acquire shares held by major shareholders of Hong Kong Broadband – 20241119 – Economy – Daily Ming Pao
Economy Update – November 19, 2024
Major banks express concern about market trends. Morgan Stanley predicts the Hang Seng Index will reach 19,400 by year-end. Goldman Sachs anticipates the RMB will hit 7.5 in the first half of 2024. UBS forecasts a slowdown in China’s GDP growth. Recently, the Hang Seng Index gained 150 points after facing three weeks of negative conditions.
The China Securities Regulatory Commission announced a more pragmatic market opening. Alibaba’s quarterly results fell short of expectations, prompting major banks to lower their ratings. HSBC reportedly requested hundreds of managers to reapply for their positions. In contrast, Xiaomi’s revenue increased by 30% last quarter, achieving a record high. The electric car model SU7 delivered over 20,000 units last month and raised its annual target to 130,000.
In the Shanghai property market, new tax policies are being implemented. China Mobile plans to acquire shares held by Hong Kong Broadband’s major shareholder, Li Ka-shing. The company aims to increase holdings in Changshi Air with investments exceeding 120 million and will issue 854 million A shares to AVIC Group to raise 6 billion.
On the technology front, Nvidia’s new AI chip, Blackwell, faces scrutiny for overheating issues. Tesla’s stock price has risen 8% as Trump considers easing restrictions on self-driving cars, creating potential benefits for Musk.
Market experts expressed mixed feelings. Zhang Zhaocong believes Xiaomi’s valuation is high; he suggests fixed deposits in Hong Kong dollars may be more prudent. HSBC offers a 1-month annual interest rate of 4.5%. Huang Wenyi from China Construction Bank sees an opportunity due to low prices, while He Minjie remarks that Hong Kong youth struggles in the real estate market.
Arend Kapteyn cautions that tariffs from the U.S. and Canada could slow global economic growth. Dr. Wu Leijun discusses the moral implications of platform algorithms. Xue Weijie indicates that human error led to the scrapping of thousands of wafers.
In real estate, Liu Siming comments that market dynamics are tough for net stock speculation. Zhou Xian criticizes the practice of issuing debt for income. Tang Wenliang states it is difficult to reduce property vacancies without price increases. However, valuations of leading housing estates have stabilized, with Taikoo Shing seeing a two-month price increase of 5%. Following interest rate cuts and the “Policy Address,” industry valuations are expected to rise.
Kwong Ming Court’s valuation increased by 3% this month. A senior manager purchased a property for 46.5 million yuan. After the “Policy Address,” a four-bedroom house in Songbai New Village was sold. Ai Wah Mortgage Company acquired a ground-floor shop in Tuen Mun for NT$21.8 million.