PRE-MARKET CHINESE STOCKS NEWS: PBoC Q1 Monetary Policy Implementation Report stated they will continue to implement appropriately loose monetary policy, as well as utilise a variety of monetary policy tools flexibly, while it is to improve LPR mechanism
CIFI Holdings (884 HK) - Co. Apr (CNY) contracted sales 670mln (prev. 1.72bln Y/Y). (Newswires)
Foxconn Interconnect Technology (6088 HK) - Co. Q1 (USD) net 10.4mln (prev. 6.2mln Y/Y), rev. 1.20bln (prev. 1.10bln Y/Y). (Newswires)
Kuaishou Technology (1024 HK) - Co. reportedly plans to spin off its Kling AI video unit at a USD 20bln valuation, according to sources. (The Information)
Longfor Group (960 HK) - Co. Apr (CNY) contracted sales 1.93bln (prev. 3.61bln Y/Y). (Newswires)
Poly Real Estate (600048 CH) - Co. Apr (CNY) contracted sales rose 5.3% Y/Y to 25.9bln. (Newswires)
Pou Sheng International (3813 HK) - Co. Apr (CNY) rev. rose 0.1% Y/Y to 1.38bln. (Newswires)
Shenzhen Airport (000089 CH) - Co. Apr passenger throughput rose 2.7% Y/Y to 5.5mln. (Newswires)
Sinopec Engineering Group (2386 HK) - Co. said Chairman Jiang Dejun resigned, effective immediately. (Newswires)
Cosmetics - China is said to tighten cosmetics trade rules. (Xinhua)
Energy - China’s private refiners seek government approval to reduce run rates. (Newswires)
Tech - SMIC (981 HK) founder warned against ‘blind pursuit’ of cutting-edge nodes, while his rare public remarks highlighted the importance of mature chips to China’s supply chain security. (SCMP)
Trade
US President Trump said they are doing smart business with China and have a great relationship with Chinese President Xi. Trump said they will bring up prisoners in a meeting with Xi and that Taiwan will also come up in talks with China, while he said Xi is more likely to bring up Taiwan and that they will also talk about energy and Iran with Xi. (Newswires)
US President Trump is to address Chinese President Xi on selling weapons to Iran, while Beijing has considered shipping air defence systems to Iran via other countries to mask its involvement, something Trump has threatened to punish with 50% tariffs. (The Telegraph)
US White House NEC Director Hassett said "we are going into the Trump-Xi meeting very ambitious", while it was separately reported that the US delegation to China will include Tesla's (TSLA) Musk and CEOs from Visa (V), Qualcomm (QCOM), Mastercard (MA), Cisco (CSCO), Apple (AAPL) and more. However, Politico's Mueller said it seems the list of CEOs a White House official shared could be those invited to China, rather than those travelling, and a Cisco spokesperson said their CEO will not be able to attend due to earnings. (Newswires)
US President Trump’s administration is reportedly to temporarily reduce tariffs on beef imports, according to source reports. It was later reported that US President Trump will sign executive orders on Monday to allow increased beef imports and support the renewal of US cattle herd, according to a White House official. (Newswires)
US House lawmakers are introducing a bill to ban Chinese vehicles in the US. (Newswires)
Other News
PBoC Q1 Monetary Policy Implementation Report stated they will continue to implement appropriately loose monetary policy, as well as utilise a variety of monetary policy tools flexibly to maintain ample liquidity and relatively loose social financing conditions. PBoC is to reform and improve the LPR mechanism, focusing on improving quote quality to better reflect actual lending rates, and will strengthen the coordination of monetary and fiscal policies. Furthermore, it is to enhance the forward-looking, flexible, targeted nature of policies, and will strengthen financial support for expanding domestic demand, scientific and technological innovation, and micro, small and medium-sized enterprises.
The People's Bank of China (PBoC) is committing to a continued loose monetary policy, which suggests they are prioritizing liquidity to support economic growth and recovery. This approach implies that they may keep interest rates low, which could influence market sentiment positively, particularly for risk assets and Chinese equities, as the policy aims to stimulate domestic demand and support small to medium enterprises. Furthermore, their mention of reforming the Loan Prime Rate (LPR) mechanism could enhance the transmission of monetary policy, making it a key focus for traders in both Chinese markets and currencies.