Like the rain that won’t let up during a storm, investor confidence on China remains fragile despite government’s efforts to improve sentiment by adopting a series of measures aimed at spurring the sluggish economy and boosting its declining equities market.
But investors remain concerned, as shares of Chinese firms listed in the U.S. dropped overnight, while the renminbi weakened to its lowest in almost three months in New York trading. So expect another down and bumpy session in Chinese equities unless the government comes up with another measure or set of measures that will drive up investor confidence.
Asian shares may find some support from the slight rise on Wall Street overnight, though the continuing Greek drama may limit gains. Read on..
Asian shares seen mixed at the open. The Nikkei is up for a listless day as both the Chicago and Osaka futures traded close to the index’s closing level Tuesday of 20,376. CNBC
Chinese firms listed in the U.S. drop. American depository receipts of firms such as Alibaba dropped 5.1% in New York, extending their 18% decline from this year’s high, moving along with their counterparts at home. Alibaba fell ot its lowest since its IPO in the U.S., and JD.com lost as much as 12%. Bloomberg
Renminbi falls in New York trading on economic woes. Concerns that the government’s moves to support its falling equities market could hurt the economy, the Chinese currency fell to as low as 6.2279 to a dollar Tuesday, its lowest since April 13. It was also 1.8% below the official rate set for Tuesday. The Wall Street Journal (paywall)
Former Chinese premier Li Peng’s daughter joins power firm. Known as China’s “power queen”, Li Xiaolin has been appointed vice president at China Datang Corp., one of the biggest power firms in the country. Her appointment ended weeks of speculation after she failed to get a senior management post at a new power firm. South China Morning Post (paywall)
Hong Kong legislators reject proposal requiring to travelers to declare cash of more than 120,000 Hong Kong dollars ($15,500). The plan aims to align the former British colony with international standards in terms of fighting money laundering. Legislators argue this would be “hostile to tourists.” South China Morning Post (paywall)
Photo credit: Aaron Goodman via Flickr