Buybacks Become Too Big To Ignore
The post Buybacks Become Too Big To Ignore appeared on BitcoinEthereumNews.com. CLN KraneShares Key News Asian equities were higher on light volumes as investors kept an eye on the Middle East. Ten state-owned-enterprises (SOEs) announced new or increases to their buybacks, adding to the forty companies who announced similar plans in September. Several buyback indices have been announced, with Mainland ETFs likely to be launched in the not-so-distant future. Last week, we had China’s sovereign wealth fund buy four high-yielding bank stocks, with more purchases coming. Stock stamp duties have been eliminated, buybacks encouraged, and stock sales restricted, along with incremental stimulus and rate cuts. The National Energy Administration announced China’s total electricity consumption increased +9.9% year over year to 781.1 billion kilowatt-hours, which brings the YTD +5.6% YoY. These are part of the government’s effort to get the market higher as the Shanghai Composite and Shenzhen Composite sit below our lines in the sand of 3,200 and 1,900. In Hong Kong, Tencent has been buying stock hand over fist for more than two months, with Bloomberg News reporting the company has bought $4 billion of stock year to date, plus $20 billion of dividends, mainly through Meituan shares returned. Tencent returned shares of JD.com to shareholders in January 2022. There are positives on the horizon with news around Singles Day starting, a potential Biden-Xi meeting in November, and several government political and economic meetings coming. Mainland media had a good article speaking to the process of the “policy bottom” moving towards the “market bottom”. “Less bad” is a positive catalyst, though the $1,000 question on Fed hiking has weighed on risk assets. Several distressed property developers were back in the news as they struggled to meet coupon/principal repayments though we should be used to this as Western media’s “Lehman moment” is becoming a bit long in the tooth. The Ministry…
The post Buybacks Become Too Big To Ignore appeared on BitcoinEthereumNews.com.
CLN KraneShares Key News Asian equities were higher on light volumes as investors kept an eye on the Middle East. Ten state-owned-enterprises (SOEs) announced new or increases to their buybacks, adding to the forty companies who announced similar plans in September. Several buyback indices have been announced, with Mainland ETFs likely to be launched in the not-so-distant future. Last week, we had China’s sovereign wealth fund buy four high-yielding bank stocks, with more purchases coming. Stock stamp duties have been eliminated, buybacks encouraged, and stock sales restricted, along with incremental stimulus and rate cuts. The National Energy Administration announced China’s total electricity consumption increased +9.9% year over year to 781.1 billion kilowatt-hours, which brings the YTD +5.6% YoY. These are part of the government’s effort to get the market higher as the Shanghai Composite and Shenzhen Composite sit below our lines in the sand of 3,200 and 1,900. In Hong Kong, Tencent has been buying stock hand over fist for more than two months, with Bloomberg News reporting the company has bought $4 billion of stock year to date, plus $20 billion of dividends, mainly through Meituan shares returned. Tencent returned shares of JD.com to shareholders in January 2022. There are positives on the horizon with news around Singles Day starting, a potential Biden-Xi meeting in November, and several government political and economic meetings coming. Mainland media had a good article speaking to the process of the “policy bottom” moving towards the “market bottom”. “Less bad” is a positive catalyst, though the $1,000 question on Fed hiking has weighed on risk assets. Several distressed property developers were back in the news as they struggled to meet coupon/principal repayments though we should be used to this as Western media’s “Lehman moment” is becoming a bit long in the tooth. The Ministry…
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