China Market Update: June Trade & Credit Data Exceed Expectations
In the latest market update, China's export/import and credit data surpassed expectations. Notable movements in various sectors were observed, with some industries showing positive sessions while others experienced losses. The government's focus on 'anti-involutionary' measures could impact key sectors like solar, steel, and e-commerce, potentially leading to higher margins and profits for listed corporations.
Asian equities were mixed overnight, with Thailand and the Philippines leading the gains. Hong Kong saw a boost from stronger-than-expected export/import data. Mainland China's stock market showed strength in sectors like oil, banks, and telecom, while others like semiconductors and healthcare were down.
Key highlights include Alibaba, Tencent, and Meituan gaining, while Bilibili fell. CATL and Tongwei had mixed performances, with CATL falling despite a deal with BHP, and Tongwei gaining after announcing net income loss. The government's focus on 'anti-involutionary' measures in sectors like solar and e-commerce could impact global and domestic economies positively.
Export/import and credit data exceeded expectations, with rare earth exports and US trade balance showing notable changes. The People’s Bank of China highlighted the success of monetary policies in supporting the real economy, with plans for further interest rate cuts in the second half of the year.
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