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Investors will no longer be able to get daily data about overseas fund flows in China’s stock market after the world’s second largest economy’s stock markets stop sharing daily flows data starting today, in what Bloomberg called its latest attempt “to obscure information about overseas funds going into and out of its sagging stock market.”
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This comes at a crucial time for China, which is expected to see its first yearly outflow from its bourse since 2016 as overseas fund flows continue to exit the market, Bloomberg writes. The country’s benchmark CSI 300 is down 2.5% for 2024 and is at risk of extending losses into a record fourth consecutive year.
The rationale: Analysts think of the decision as a way for Chinese authorities to reduce market volatility driven by “high-frequency data,” in hopes of making investors more concerned with long-term indicators. “Beijing stopped the release because the data hasn’t been looking good, and it’s volatile,” capital markets company abrdn Asia’s director of investment Xin Yao Ng said, adding that “they probably don’t want the data to amplify capital outflows [but] it doesn’t solve the root of the problem.”
Remember: China saw net capital outflows including net FDI outflows over 2022-2023, the IMF said last month. “Some of this may reflect multinational firms repatriating earnings. But it may also reflect shifting expectations about Chinese growth and geoeconomic fragmentation,” the Fund said.
ALSO FROM PLANET FINANCE- Libyan central bank halts operations after kidnapping of senior employee: The Central Bank of Libya suspended all operations after the head of its information technology department Musab Msallem was kidnapped by an unknown party in front of his home yesterday morning. The bank said it would only resume operations once Msallem is returned and condemned the threats leveled against the institution as different political factions vie for control of the bank.
THE MARKETS THIS MORNING-
Asian markets are mixed this morning after stock markets rallied last week following a global stock sell-off that triggered a market meltdown near the start of the month. The Kopsi is down 0.2% and the Nikkei is down 0.1%, while the Hang Seng is up 1.3%.
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ADX |
9,286 |
+0.5% (YTD: -3.1%) |
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DFM |
4,243 |
+0.6% (YTD: +4.5%) |
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Nasdaq Dubai UAE20 |
3716 |
-0.1% (YTD: -3.3%) |
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USD : AED CBUAE |
Buy 3.67 |
Sell 3.67 |
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EIBOR |
4.9% o/n |
4.6% 1 yr |
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TASI |
11,981 |
+0.6% (YTD: +0.1%) |
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EGX30 |
29,460 |
-0.6% (YTD: +18.3%) |
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S&P 500 |
5,554 |
+0.2% (YTD: +16.5%) |
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FTSE 100 |
8,311 |
-0.4% (YTD: +7.5%) |
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Euro Stoxx 50 |
4,841 |
+0.7% (YTD: +7.1%) |
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Brent crude |
USD 79.68 |
-1.7% |
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Natural gas (Nymex) |
USD 2.12 |
-3.4% |
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Gold |
USD 2,538 |
+1.8% |
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BTC |
USD 59,790 |
+0.6% (YTD: +41.4%) |
THE CLOSING BELL-
The DFM rose 0.6% last Friday on turnover of AED 178.1 mn. The index is up 4.5% YTD.
In the green: Watania International Holding (+14.4%), Commercial Bank of Dubai (+9.8%) and Al Firdous Holdings (+2.9%).
In the red: National International Holding Company (-9.8%), Shuaa Capital (-4.7%) and Agility The Public Warehousing Company (-4.3%).
Over on the ADX, the index rose 0.5% on turnover of 817.1 mn. Meanwhile, Nasdaq Dubai fell 0.1%.
CORPORATE ACTIONS-
Dubai Investments’ subsidiary Al Mal Capital REIT will distribute AED 15.4 mn in interim dividends for 1H 2024, equivalent to AED 0.3 per unit, according to a DFM disclosure (pdf).
