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Stock market news for May 12, 2024
3 hours ago
China reportedly moves ahead with plans to sell long-term bonds worth $138 billion
China has reportedly started plans to sell a trillion yuan ($138.24 billion) worth of ultra-long-term bonds, according to reports from the Financial Times and Reuters.
The Financial Times said that the People’s Bank of China “asked brokers for advice on the sale price of the first batch of sovereign bonds.”
Meanwhile, Reuters said the bonds will be issued from May 17, citing sources who said there would be 300 billion yuan in 20-year bonds, 600 billion yuan in 30-year bonds and 100 billion yuan in bonds 50 years old.
These ultra-long-term bonds were announced in March and are intended to finance large projects aligned with national strategies.
These bonds have only been issued three times before, during the Asian financial crisis in 1998, for the capitalization of the China Investment Corporation in 2007 and during the Covid-19 pandemic in 2020.
-Lim Hui Jie
3 hours ago
Shein Reportedly Boosts London IPO Preparations Amid US Hurdles
China’s Shein is stepping up its preparations to go public in London after an attempted listing in New York was hit by regulatory challenges. Reuters reportciting sources with knowledge of the subject.
The fast-fashion retailer plans to file documents with the London Stock Exchange (LSE) as early as this month and will update China’s securities regulator on the location of the IPO, according to the report.
Shein filed a request to go public in the US at the end of Novembervalued at US$66 billion.
– Shreyashi Sanyal, Reuters
6 hours ago
April inflation in China is slightly higher than expected
Consumer prices in China rose at a faster pace than expected, with the consumer price index in April recording a 0.3% increase from the previous year, data from the Office for National Statistics showed on Saturday.
This figure was higher than the 0.2% predicted by a Reuters poll of economists and higher than the 0.1% increase seen in March.
Separately, China Producer Price Index fell 2.5% compared to April last year, compared to a drop of 2.8% in the previous month.
-Lim Hui Jie
7 hours ago
Stocks face a major inflection point this week with April inflation data
Wednesday’s consumer price index report will give much-needed insight into which direction the Federal Reserve will take monetary policy from here.
Inflation has risen in recent months and raised concerns that price pressures could rise again consistently. Central Bank Chairman Jerome Powell said last month that the Fed’s next move would likely not be a rate hike and reiterated a data-dependent approach. The sentiment helped stocks that found a steady footing thanks to a robust first-quarter earnings season.
Still, Wednesday’s CPI print will give investors a true test of whether rate hikes are truly out of the question.
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-Brian Evans
8 hours ago