Update Time：2025/02/13
Tariff concerns weigh on US stocks, Chinese assets rise as wall street turns bullish
Hot Topics:
1.Trump Plans to Impose 25% Tariffs on Steel and Aluminum Imports
Trump has officially launched the second phase of his tariff policy, imposing a 25% tariff on all imported steel and aluminum starting Monday. He also plans to implement “reciprocal tariffs,” meaning the U.S. will match foreign tariffs with equal retaliation, with measures taking effect immediately.
Affected industries include automotive, aerospace, and defense, with companies like Tesla, Ford, and GM facing rising production costs and profit margin pressure. Potential countermeasures may come from Canada (reducing oil exports) and Mexico (seeking alternative suppliers). However, the U.S. domestic steel and aluminum industries, as well as some construction companies, may benefit.
The market remains highly sensitive to tariff policies, with short-term risks persisting. Stock market movements will be driven by policy changes, and investors should stay informed on global trade developments to navigate market volatility.
2.Chinese Government Supports Vanke’s Financing to Ease Debt Pressure
According to insiders, the Chinese government is working on a plan to help Vanke fill a funding gap of approximately 50 billion yuan to prevent a debt crisis similar to Evergrande. The plan includes allocating 20 billion yuan in local government special bonds to purchase Vanke’s unsold properties and land, helping the company repay its maturing debt. Additionally, Vanke has been granted approval to raise funds through new bond issuances and bank loans.
Vanke faces $4.9 billion in debt maturing this year, while declining property sales and restricted financing channels have intensified its liquidity challenges. The Shenzhen government has intervened in its management and provided a 2.8 billion yuan loan. As a result, Vanke’s bond prices have rebounded, and its stock surged by 19%, lifting the overall real estate sector.
Despite government support boosting market confidence, Vanke still faces challenges with total liabilities reaching 982 billion yuan. Moody’s has downgraded its credit rating to Caa1.
As China’s property crisis continues, the government is prioritizing support for state-backed developers like Vanke to prevent defaults from further destabilizing the market. Meanwhile, the housing market remains weak, with new home sales in January down 3.2% year-over-year, highlighting ongoing pressures on the industry’s recovery.
*Source: Bloomberg
*内容来源：彭博
Update Time：2025/02/13
Update Time：2025/02/13
Gold has deviated from its price range short term, while Wall Street is bullish on Chinese assets
1.Safe-Haven Assets:
Louise Street, a senior market analyst at the World Gold Council, predicts that in 2025, global central banks will continue to drive gold demand, while investments in gold ETFs will also play a crucial role in supporting the market. Geopolitical and macroeconomic uncertainties are expected to be key themes in 2025, reinforcing gold’s role as a hedge and a store of value.
However, in the short term, gold prices have surged beyond their price center, making it less favorable to chase further gains. That said, with tariff-related risks still unresolved, there remains a possibility that gold could continue to rise.
2.Chinese Assets:
On Wednesday, both A-shares and Hong Kong stocks saw a sharp rally, driven by a rebound in Shenzhen’s secondary housing market and positive news surrounding Vanke’s debt situation.
Data showed that Shenzhen’s weekly second-hand home transactions surged by 3,069.2% week-over-week. Market expectations suggest that if China’s real estate issues ease, foreign investors’ confidence in the Chinese economy could improve, further boosting the stock market.
The growing optimism has triggered a wave of buying activity. Some foreign institutions have explicitly stated that they are increasing their positions in Chinese stocks. According to Bloomberg, Fidelity portfolio manager Taosha Wang said that Fidelity International has raised its allocation to Chinese equities and now holds an overweight position. Wang also noted that while the market may rebound from here, “it won’t be a straight line.”
Source: Tiger Asset Management
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