China's A-share market sees share buybacks boom

2018-09-17


Listed firms on China's A-share market have conducted a surging number of share repurchases, a scheme that analysts said would boost market sentiment. By Tuesday, 482 listed firms have repurchased their shares valued at nearly 24 billion yuan ($3.5 billion) in total via 655 operations, according to information service provider Wind. The numbers represented sharp increases from 2017, when public companies on the A-share market conducted 565 share buyback operations, with shares worth 9.2 billion yuan repurchased. China's A-share market has seen sharp corrections this year, with the benchmark Shanghai Composite Index losing about 20 percent compared with the beginning of the year. The buyback scheme would support the value of stocks and boost overall market sentiment, according to Yang Delong, chief economist of First Seafront Fund.

China's retail sales, industrial output up in August

China's economic fundamentals remained sound as indicators such as industrial output and retail sales growth picked up in August, said the National Bureau of Statistics on Friday. Retail sales increased by 9 percent year-on-year last month, 0.2 percentage point higher than in July, the NBS data showed. The industrial output posted steady growth in the same month, up by 6.1 percent year-on-year and accelerating by 0.1 percentage point over July, the data showed. Fixed-asset investment growth eased to 5.3 percent in the January-August period, 0.2 percentage points lower than in the first seven months. The urban surveyed unemployment rate was 5 percent in August, down by 0.1 percentage points compared with in July, the NBS said. Mao Shengyong, spokesman of the bureau, said at a news briefing that August data showed the country's economic fundamentals remained sound and efforts should be made to further promote high-quality development of the Chinese economy.

Chinese domestic green bond indices displayed on Luxemburg bourse

Prices of three of China Central Depository & Clearing's (CCDC) domestic green bond indices were simultaneously displayed in the Luxembourg bourse starting Wednesday. The bonds indices, including ChinaBond China Climate-Aligned Bond Index, ChinaBond China Green Bond Select Index, and ChinaBond China Green Bond Index, are designed to reflect the performance of Chinese domestic green bonds mainly used to support projects in China, including clean transportation and green finance. With their simultaneous display on the Luxembourg Stock Exchange (LuxSE), overseas investors can get a better understanding of the China bond market. "Today marks a milestone in the development of the links between China's domestic green bond market and the international investment community," said Robert Scharfe, CEO of Luxembourg Stock Exchange. Scharfe said the display of these indices in China and on the LuxSE platform closes an existing information gap on Chinese green bonds for investors around the globe, which marks the first step of an even more substantial cooperation on the basis of the vast portfolio of existing green bonds currently present in the portfolio of CCDC bonds.

Sector Overviews

Top-and bottom-5 performing CITIC securities sectors of this week

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Market Outlook

Based on the latest CPI data, China’s inflation is climbing slowly but the overall magnitude remained moderate. We believe the mild pressure was mainly driven by supply but not demand, and the drive from the supply side was not strong and sustainable. Meanwhile, we noted that the growth of money supply was limited and China’s domestic demand was weak. Based on the economic data in August, both supply and demand showed signs of weakening. For full-year 2018, the economy should see downward pressure but inflation should be mild. (China Galaxy International) 

 

 

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