Stocks: Asian Equities Surge on Easing Trade War
STOCKS – On Thursday morning, Asian market shares increased in trade. This followed after reports that China plans to cancel a few of its ambitious plans for dominance in high-end technologies. Moreover, this is a part of Beijing’s effort to soften the trade tensions between Washington.
Based on a Bloomberg report, two sources said that China may delay the country’s plan “Made in China 2025.” The said plan may set to happen in 2035 instead.
The news followed after the call of U.S. Commerce Secretary Wilbur Ross and Treasury Undersecretary for International Affairs David Malpass. Both of them have urged China to pursue extensive efforts in ending the trade war.
“What you will see, if we do get to a trade agreement with China, is there will be verification procedures, there will be enforcement mechanisms. We’re talking about some fairly fundamental structural changes that over time will be needed to accomplish at least our end purposes,” Ross said.
Meanwhile, there was a 1.6% and 1.9% increase in the Shanghai Composite and the SZSE Composite respectively. The Hang Seng Index of Hong Kong also jumped 1.5%.
On its Tuesday’s report, Citi stated that there are expectations that China will speed up its projects on Belt and Road. This was amid the trade conflicts with the United States.
In other news, the KOSPI of South Korea inched up 0.6%. As per Hyundai Motor, it expressed plans to bring a 1.7 trillion ($1.5 billion) worth of funds. This is for the stabilization on the management of its suppliers.
There was a 1.0% increase in the Nikkei 225 of Japan. Meanwhile, the ASX 200 of Australia surged 0.4%.
Stocks: Hengan shares drop on short seller’s accusation
Hengan International Group’s shares, a sanitary napkins and baby diapers maker company, declined 3.68% to HK$54.95. This was after it continued its trade on Thursday.
The drop in prices followed after short seller Bonitas Research’s allegation. It accused Hengan of fabrication of income and profitability. Moreover, Bonitas Research considered the equity of Hengan “ultimately worthless.”
There was a suspension for Hengan from trading in the last session. On Thursday, Hengan released a statement, denying the said accusation.
According to Bonita, Hengan is fabricating a net income worth RMB 11 billion (U.S.$1.6 billion) since 2015. Further, Bonita stated that Hengan is claiming that there was a 72% return in the sanitary napkin assets last two years ago.
However, Hengan deemed the accusation as “speculative and baseless.”
Based on Bonita’s report, the value of the company’s stock is ultimately zero. This is because the company has an outstanding amount of debt, Bonita added.