The figurative fallout from the bloated Chinese spy balloon weighed on Hong Kong and mainland stocks on Monday, as the deterioration of the U. S. The U. S. and China caused a setback in the market rally.
Hong Kong’s benchmark Hang Seng Index had a few bumpy months, emerging more than 50%. But it fell 2. 0% on Monday, and the CSI index three hundred of the largest quotes in Shanghai and Shenzhen was also down 1. 3%.
Hong Kong is the “fast money” site that moves in and out of Chinese stocks. Unlike the closed markets of the mainland, foreign investors can buy and sell as they please in Hong Kong.
They were sold today, they were bought recently. After being the world’s biggest loss for two years, the Hang Seng jumped 54. 4% from its lowest point on Oct. 31 to Jan. 27. Since then, geopolitical tensions have seen a loss of 6. 4%.
Stocks in Hong Kong and mainland China rose in anticipation of China’s reopening after Beijing abandoned its zero-covid policy. Return to normal, especially in the current part of this year.
The movements of the continent’s stocks have not been as impressive as the sell-off has not been as severe. But the CSI 300 followed the same trend as the Hang Seng, hitting a low on Oct. 31 before 19. 7% in late January. . So far in February, it is down 2. 7%.
U. S. -China relations The U. S. and China also saw slight improvements, prior to the spy ball incident. Secretary of State Antony Blinken was scheduled to travel to Beijing and was expected to meet with Chinese President Xi Jinping, but on Friday postponed the holiday indefinitely. An F-22 Raptor aircraft detonated the Chinese balloon with an AIM-9X Sidewinder missile over South Carolina. coast on Saturday.
China says the unmanned balloon is “a civil aircraft used for research purposes, basically meteorological. “He says westerly winds caused him to deviate from his planned route. It also states that it “has no intention of violating and has never violated the territory. “or the airspace of any sovereign country,” even though Japan claims five Chinese missiles landed in its waters while China was conducting war exercises around loose Taiwan. Moreover, China denies that Blinken and Xi ever planned to meet.
The Pentagon says the balloon is part of a fleet of Chinese spy balloons that have been spotted over the Americas, East Asia, South Asia and Europe. But it’s also unclear what the target of any brazen intrusion into U. S. airspace might be. U. S. The balloon would have provided little data that a Chinese spy satellite simply cannot provide.
The incident undermines any progress stemming from the meeting between the U. S. president and the U. S. president. US President Joe Biden and his Chinese counterpart, Xi, in Bali in November. There is optimism at the time that thawing the environment can restore troubled relations between the U. S. and Canada. The U. S. and China.
Biden is scheduled to deliver his State of the Union address on Tuesday and is under pressure to respond forcefully to the balloon incident. The United States and Taiwan will also participate in election cycles soon, suggesting that customers for a rapprochement with China are scarce.
One exception to today’s sale came from artificial intelligence developer SenseTime Group (HK:0020). The company, which is subject to U. S. sanctions, is subject to U. S. sanctions. The U. S. signed a letter of intent to supply its generation to two Saudi companies. SenseTime’s stock rose 6. 4%, with its products still at the top of demand through dictators and authoritarian states around the world.
The U. S. Department of the Treasury The U. S. imposed sanctions on SenseTime on Human Rights Day in October 2021, believing that its generation of facial popularity is being used as part of China’s military-industrial complex, to surveil ethnic minorities, adding to China’s Uighur population.
Western countries continue to try to diversify production chains outside of China. An unproven Australian company has just been given permission to take over a bankrupt British battery maker, promising to help build electric cars in Britain without materials from China and Russia.
Recharge Industries chose as the preferred bidder to take over Britishvolt and take it out of the hands of the EY administrator. It beat out 3 other bidders and will now paint its final bid, promising to revive plans to build a $4. 6 billion gigafactory in northern England.
Recharge, which is also looking to build a battery factory at Avalon Airport outside Melbourne, could finish making batteries with Australian minerals such as lithium, an American generation founded on battery developer C4V and British and Australian manufacturing, incorporating all production cycles within this circle of Western allies.
While trade relations between the U. S. The US and China seem to have reversed, they are moving back between Australia and China. an unofficial ban through China on imports of seven types of Australian products.
Australian Trade Minister Don Farrell showed on Monday he would travel to Beijing to meet his counterpart Wang Wentao, before an imaginable stopover at Australian Prime Minister Anthony Albanese later this year. This is the first time the two countries’ industry ministers have met since pre-Covid times in 2019.
At the time of publication, Alex Frew McMillan had no information about the titles mentioned.
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