Hong Kong

The week will be dominated by renewed trade tensions, talks between Washington and Beijing, and decisions made by the central banks of the United States, Canada, and Europe. Meanwhile, Argentina's voters go to the polls. Dhara Ranasinghe, Alden B. Bentley, Lewis Krauskopf, and Rodrigo Campos in New York and Kevin Buckland, in Tokyo, give you all the information about what to expect in world markets this week. 1/ A MIDTERM DRAMA The mid-term elections in Argentina on Sunday will be a crucial moment for the biggest reform story of emerging markets. Right-wing president Javier Milei wants to consolidate his minority...

The oil prices rose by about 5% after Washington imposed new sanctions against major Russian companies for the war in Ukraine. Major stock indexes also edged up as gains from U.S. energy stocks and European energy shares offset some disappointing earnings reports. The sanctions were announced late on Wednesday and targeted major Russian suppliers Rosneft, Lukoil. The U.S. announced it was ready to take additional action, as it urged Moscow to immediately agree to a ceasefire. Energy was the leading sector to gain on Wall Street, according to the S&P 500 index. Energy was the last sector to gain 1.2%....

The global stock market got a boost Thursday thanks to a series of positive earnings reports that helped offset some of the gloom in Wall Street due to a lacklustre performance by tech megacaps. Oil prices also rose following U.S. sanction against Russia. After the U.S. placed sanctions on Rosneft, and Lukoil, two major Russian oil companies over the Ukraine conflict. The STOXX 600 index rose 0.3% for the day, as positive earnings helped to boost the domestic indexes. The MSCI All-World Index, however, has slipped into the negative zone, and is on its way to its third consecutive day...

In Australia, the biggest buyouts in 15 years have failed this year. Misaligned valuations and regulatory risks are adding to the challenges of navigating a regulatory environment that is becoming increasingly strict. The ADNOC-led group's decision to withdraw from its bid of $18,7 billion for Santos (Australia's second-largest gas producer) is the latest high-profile deal to fail in Australia in this year. Sources reported that the ADNOC bid, via its investment vehicle XRG was shelved because of disagreements between the parties on potential capital gains taxes relating to a Santos property. Analysts said that the deal would also have had...

Hong Kong's gateway to China is strengthened by the influx of mainland Chinese investors. This investment boosts market liquidity and depth, while also strengthening its position. This capital flow could be slowed by short-term headwinds, but the market's diversification and innovation will likely propel it over time. Stock Connect, launched in November 2014 by the Hong Kong Shanghai and Shenzhen Exchanges, allowed mainland Chinese investors trade certain stocks listed in Hong Kong. This is known as "Southbound Stock Connect", while also facilitating flow in the other direction. Between 2017 and 2023, the Connect programme expanded to include interest rate swaps,...

Hong Kong's chief executive has said that the stock exchange will be attracting listed companies from Southeast Asia and Middle East for second listings, as it looks to improve its global reputation. Bonnie Chan, a spokesperson for Hong Kong Exchanges and Clearing Ltd. (HKEX), said that the number of mainland China listed companies seeking to list in Hong Kong in order to raise capital in order to fund their global expansions is also increasing. Chan, the first woman CEO of HKEX, said that they are now focusing on companies who have already been listed on other markets, but may have...

Shell Indonesia announced on Friday that it has sold its gas station business ownership to a joint-venture between Citadel Pacific Limited, Sefas Group and Citadel Pacific Limited. The company will retain its lubricant division. Shell has said that the deal will be finalized by the end of next year. It includes 200 gas stations and a fuel terminal in Gresik. The move is part of its strategy to transform the company's portfolio. The company stated in a press release that "after completion, Shell will remain in Indonesia via brand licensing agreements." Citadel Pacific, a private holding company based in the...

Sinopec, a Chinese oil company, is seeking to raise HK$7.75billion ($994.42m) via an exchangeable bond. This was revealed in a termsheet seen by us on Tuesday. The term sheet stated that the bond will have a zero to 0.99% coupon and be issued by an affiliate of Sinopec Group. The term sheet stated that the bonds would be exchangeable for shares of Sinopec's Hong Kong-listed subsidiary. The bond's exchange price is HK$6, which is 47.1% higher than Sinopec Hong Kong's closing price of HK$4.08 for Tuesday. Sinopec failed to respond to a request for comments sent by fax outside normal...

According to the prospectus it filed on Monday, Chinese battery manufacturer CATL aims at raising at least HK$31.01bn ($3.99bn) through its Hong Kong listing. This is the largest new share sales in the city for this year. According to documents filed with the Hong Kong Stock Exchange, the maker of batteries used in electric vehicles will sell 117.9 millions shares at a maximum price of HK$263 each. If the offer size adjustment and greenshoe options are used, then the size of this deal could reach $5.3 billion. The prospectus revealed that more than 20 cornerstone shareholders, including Sinopec, Kuwait Investment...

HSBC reduced its Brent crude forecast on Tuesday. It cited rising trade tensions as well as an expected decrease in global oil consumption. The Bank cut its Brent Price Forecast to $68.5 per barrel in 2025, and $65 for 2026. The company also reduced its forecast for global demand growth in 2025 to 0.7 million barrels per day (mbd), and to 0.8 mbd in 2026, compared to the previous 0.9 mbd. This was due to an expected one-percentage point drop in global GDP. The ambiguous U.S. policy on trade has created uncertainty in the global oil market and prompted the...

Donald Trump, the U.S. president, threatened Iran on Sunday with bombings and secondary duties if Tehran failed to reach an agreement with Washington regarding its nuclear program. In a phone interview with NBC News Trump stated that U.S. officials and Iranian officials are talking, but did not provide any further details. Trump warned that if they do not make a deal there would be bombing. "But if they do not make a deal I may impose secondary tariffs like I did in 2004." Trump, in his first term 2017-21, rescinded the U.S.'s participation in a 2015 agreement between Iran and...

Alimentation Couche-Tard wants to convince the Japanese people to accept its $47 billion offer for Seven & i. It also wants to address the antitrust concerns which have become a major stumbling-block in its bid to purchase the 7-Eleven owners. Canada's Couche-Tard which owns Circle-K has been pursuing Seven & i since months despite the cold reception it received from the Japanese retailer. If the deal goes through, this would be the largest foreign acquisition in Japan's history. On Thursday, executives from Couche-Tard held their first press conference at Tokyo. This was months after announcing a takeover bid for Seven...

Metals are a hot topic these days. Silver is catching up to gold in terms of record-breaking prices. Rare earths are at the center of the U.S.-China trade dispute, and the industrial metal supply chain is bending under the new global order of tariffs. The London Metal Exchange Week (LME Week) seminars and parties this year were full of interesting topics. The annual metals conference in London last week was a great success. Here are five key takeaways. GREEN PREMIUMS Hong Kong Exchanges and Clearings (HKEx), the owner of LME, surprised LME Week by announcing a new Dubai-based subsidiary. Commodity...

Gold prices increased by more than 1% on the first day of this week, boosted by expectations for further U.S. rate cuts, and by sustained demand from investors who were awaiting upcoming U.S. China trade talks, and U.S. inflation data due out later in the week. As of 1330 GMT, spot gold rose 1.6% to $4,318.50 an ounce. U.S. Gold futures for delivery in December rose 2.8%, to $4333.10 an ounce. Gold prices reached a record-high of $4,378.69 per ounce on Friday but ended 1.8% lower, their biggest drop since mid-May, after Donald Trump's comments eased concerns about U.S. China...

Metals are a hot topic these days. Silver is catching up to gold in terms of record-breaking prices. Rare earths are at the center of the U.S.-China trade dispute, and the industrial metal supply chain is bending under the new global order of tariffs. The London Metal Exchange Week (LME Week) seminars and parties this year were full of interesting topics. The annual metals conference in London last week was a great success. Here are five key takeaways. GREEN PREMIUMS Hong Kong Exchanges and Clearings (HKEx), the owner of LME, surprised LME Week by announcing a new Dubai-based subsidiary. Commodity...

The physical gold market in Asia was very strong during this week. Prices broke multiple records and premiums in India reached their highest levels in more than a decade, ahead of the major festivals in this month. Gold prices in the spot market surpassed $4300 an ounce on Thursday for the first. They have gained 7.6% over this past week, amid renewed U.S. China trade tensions, and anticipation of a U.S. interest rate cut. This week, the domestic gold price in India reached a new record of 131 699 rupees for 10 grams. Indian dealers quoted premiums Up to $25...

From Monday to Thursday, the elite Central Committee of China’s ruling Communist Party is holding a closed door meeting to discuss, amongst other things, its 15th five-year plan for development. This meeting is known as a Plenum and it's the fourth one since the Party Congress of 2022. What does it all mean? What is a plenum? Central Committee, the largest decision-making body of the party, holds seven plenums in between congresses. The fifth plenum is traditionally used to discuss five-year plans. The party will now be expected to review the 2026-2030 Plan during the Fourth Plenum, which takes place...

China Nonferrous Metal Mining Group's Vice General Manager said that the group is preparing three stockpiles containing precious and rare metals as well as "scattered" or low-concentration metals in Earth's crust. Fan Wei, vice-general manager of the state-owned mining company, said, "We plan to do that." He spoke on the sidelines the China Nonferrous Metals Forum as part of the annual LME Week in London. Fan, in his presentation at the forum, said that CNMC would prioritise the development of 14 different types of metals including tantalum and niobium as well as platinum group metals such beryllium and indium. He...

The physical gold demand in India remained steady this week, despite the record-breaking price rise, as jewellers, investors, and collectors bought bullion in anticipation of important festivals that will take place later in this month. In China, however, buying was subdued due to higher exchange rates in the post-holiday market. Hong Kong residents sold everything, from gold bars and rings to cash out on the record price rise. Gold prices in the spot market rose to $4,000 an ounce on Wednesday for the first time, due to a combination of geopolitical, economic and rate-cutting expectations. This month, Indians will celebrate...

Hong Kong residents scrambled this week to sell gold bars, rings and family jewels. They weighed their precious items and counted money stacks as they rushed to cash in on the record rally which pushed gold to $4,000 for first time. Around 50 people waited outside the Chong Kee Gold store near Hong Kong’s central business district with gold jewellery such as bracelets, necklaces, and bullion. They were hoping to benefit from the prices which have increased by 50% in the past year. Theres Lam, an attorney, was in line outside of the shop and said that she would be...

Sources said that Russian companies' plans for low-cost financing through China's massive bond market are not working because Chinese investors and banks avoid them due to concerns over Western sanctions. The conundrum shows how difficult it is for Russian companies to raise capital in a country which has been an ally since Moscow's invasion of Ukraine over three years ago. Beijing, which is seeking a deal with Washington while also forging a partnership with Russia - a relationship that is said to have no limits - is being put to the test. Last month, sources at top Russian companies including...

Gold prices fell on Tuesday, as investors took profits after the price hit a record earlier in the day. However, concerns about a U.S. shutdown and an increase in bets for a Federal Reserve rate reduction limited losses. As of 0924 GMT, spot gold was down 0.9% at $3,800.34 an ounce after gaining 1% during Asia hours to reach a record high price of $3,871.45 per ounce. Bullion is up 10.4% in September and on course to have its largest monthly percentage gain since the month of July 2020. U.S. Gold Futures for December Delivery fell by 0.7% to $3.827.80....

Hong Kong Census and Statistics Department figures released on Thursday show that China's net imports of gold via Hong Kong fell by 39.11% in August compared to July. Why it's important China is the largest gold buyer in the world. Its buying activities can have a significant impact on global gold markets. Hong Kong's data might not be a complete view of Chinese gold purchases as it is also imported through Shanghai and Beijing. By the Numbers The net imports from Hong Kong into China in August were 26.746 tons compared to the 43.923 tons imported via Hong Kong in...

This week, physical gold premiums in India reached a record high of 10 months as investors continued to buy bullion because they expected further gains. Discounts in China also increased to their highest level in five years. The price of gold in India was around 109.500 rupees (1,240.09 dollars) per 10 grams, after reaching a record high earlier this week at 110,666. A bullion dealer in Chennai said, "The rally made people more certain that gold would keep rising. So they snapped up coins and bar." This week, the dealers quoted a premium The highest price since mid-November, 2024, is...