Shares of China’s Baidu pop over 8% after earnings beat as CEO says ‘temporary pain’ will pay off

Baidu shares surged over 8% in U.S. after-hours trade after it reported earnings for the second quarter that beat market expectations, as it managed to fend off newer rivals like TikTok parent ByteDance in the advertising space. Here are the results for the June quarter:Revenue of 26.3 billion yuan, or $3.83 billion, according to the exchange rate published in the company’s earnings release. Revenue beat market expectations of 25.76 billion yuan. After posting its first loss since 2005 in the fi


Baidu shares surged over 8% in U.S. after-hours trade after it reported earnings for the second quarter that beat market expectations, as it managed to fend off newer rivals like TikTok parent ByteDance in the advertising space. Here are the results for the June quarter:Revenue of 26.3 billion yuan, or $3.83 billion, according to the exchange rate published in the company’s earnings release. Revenue beat market expectations of 25.76 billion yuan. After posting its first loss since 2005 in the fi
Shares of China’s Baidu pop over 8% after earnings beat as CEO says ‘temporary pain’ will pay off Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: arjun kharpal
Keywords: news, cnbc, companies, earnings, chinas, billion, shares, pop, search, beat, revenue, ceo, second, yuan, baidu, yearonyear, rising, pay, temporary, market, tiktok, pain, quarter


Shares of China's Baidu pop over 8% after earnings beat as CEO says 'temporary pain' will pay off

Baidu shares surged over 8% in U.S. after-hours trade after it reported earnings for the second quarter that beat market expectations, as it managed to fend off newer rivals like TikTok parent ByteDance in the advertising space.

Here are the results for the June quarter:

Revenue of 26.3 billion yuan, or $3.83 billion, according to the exchange rate published in the company’s earnings release. That represented a 1% year-on-year increase or 9% on the quarter. Revenue beat market expectations of 25.76 billion yuan.

Earnings per share of 10.11 yuan, beating estimates of 6.12 yuan. That was a 54% year-on-year decline but a more than 260% increase from the previous quarter.

Expectations were low. The stock had declined nearly 40% this year, and investors were concerned about the impact of rising competition and stricter censorship from the Chinese government on online videos which could hurt ad revenue.

But Baidu reported numbers that pleased the market. After posting its first loss since 2005 in the first quarter of the year, the Chinese internet giant returned to a net profit in the second quarter.

Its core advertising and marketing services business hit revenues of 19.5 billion yuan, decreasing 2% year-on-year but rising 12% on the quarter. Given that this makes up around three quarters of the company’s revenue, the signs of stabilization were welcomed.

The search giant has also been criticized for its slow shift to mobile as consumers spend an increasing amount of time on so-called “super apps.” These are products like Tencent’s WeChat or Ant Financial’s Alipay where a user can do a number of different things ranging from payments to ordering food — all within one app.

Baidu has also faced new competition from ByteDance, the owner of social media app TikTok, which recently launched a search product.


Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: arjun kharpal
Keywords: news, cnbc, companies, earnings, chinas, billion, shares, pop, search, beat, revenue, ceo, second, yuan, baidu, yearonyear, rising, pay, temporary, market, tiktok, pain, quarter


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Treasury yields climb away from record lows

How the Chinese yuan is likely to perform in three trade war… The trade war between the U.S. and China is turning into a brewing currency war, say analysts. Bank of America Merrill Lynch Global Research predicts what might happen to the…Asia FXread more


How the Chinese yuan is likely to perform in three trade war… The trade war between the U.S. and China is turning into a brewing currency war, say analysts. Bank of America Merrill Lynch Global Research predicts what might happen to the…Asia FXread more
Treasury yields climb away from record lows Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: sam meredith
Keywords: news, cnbc, companies, turning, perform, record, treasury, climb, war, trade, lows, say, yields, away, research, predicts, warthe, theasia, yuan


Treasury yields climb away from record lows

How the Chinese yuan is likely to perform in three trade war…

The trade war between the U.S. and China is turning into a brewing currency war, say analysts. Bank of America Merrill Lynch Global Research predicts what might happen to the…

Asia FX

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Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: sam meredith
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Asia stocks mixed as investors watch US Treasury yields

Stocks in Asia were mixed on Friday as investors watched yields on longer duration U.S. Treasurys as well as for developments on the U.S.-China trade front. US bonds watchInvestors watched for movements in the bond market, particularly in U.S. Treasurys. The yield on the 30-year Treasury bond declined to a record low on Thursday, while the yield on the benchmark 10-year Treasury note touched a three-year low. The yield on the 30-year Treasury bond was last at 2.0078%, while the rate on the 10-ye


Stocks in Asia were mixed on Friday as investors watched yields on longer duration U.S. Treasurys as well as for developments on the U.S.-China trade front. US bonds watchInvestors watched for movements in the bond market, particularly in U.S. Treasurys. The yield on the 30-year Treasury bond declined to a record low on Thursday, while the yield on the benchmark 10-year Treasury note touched a three-year low. The yield on the 30-year Treasury bond was last at 2.0078%, while the rate on the 10-ye
Asia stocks mixed as investors watch US Treasury yields Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: eustance huang
Keywords: news, cnbc, companies, investors, indicator, dollar, treasury, asia, trade, watch, watched, china, bond, yields, market, stocks, mixed, recession, yuan


Asia stocks mixed as investors watch US Treasury yields

Stocks in Asia were mixed on Friday as investors watched yields on longer duration U.S. Treasurys as well as for developments on the U.S.-China trade front. Mainland Chinese stocks advanced on the day, with the Shanghai composite up 0.29% to 2,823.82 and the Shenzhen component gaining 0.57% to 9,060.92. The Shenzhen composite rose 0.554% to 1,525.48. Hong Kong’s Hang Seng index added 0.85%, as of its final hour of trading. Hong Kong-listed shares of Ping An Insurance Group jumped 2.52% after the company announced its strongest first half profit growth in a over a decade on Thursday. In Japan, the Nikkei 225 recovered from an earlier slip to finish its trading day fractionally higher at 20,418.81, while the Topix index closed 0.1% higher at 1,485.29. Meanwhile, South Korea’s Kospi slipped 0.58% to close at 1,927.17 following its return from a holiday. Shares of chipmaker SK Hynix fell 0.65% and LG Chem shed 1.08%. Australia’s S&P/ASX 200 ended its trading day just below the flatline at 6,405.50. Overall, the MSCI Asia ex-Japan index added 0.38%.

US bonds watch

Investors watched for movements in the bond market, particularly in U.S. Treasurys. The yield on the 30-year Treasury bond declined to a record low on Thursday, while the yield on the benchmark 10-year Treasury note touched a three-year low. The yield on the 30-year Treasury bond was last at 2.0078%, while the rate on the 10-year Treasury note was at 1.5521%. The historic drop in long-term U.S. bond yields came after the interest rates on the closely watched 10-year and 2-year Treasurys inverted — an bond market phenomenon that has historically been a reliable indicator of economic recessions. “I think it’s one indicator and obviously market practitioners do look at this … as an important leading indicator of potential recession but I think what’s perhaps what’s been slightly overdone by some market commentators is that recession is imminent and guaranteed, which we … absolutely do not agree with.” Roger Bacon, head of Asia Pacific investments at Citi Private Bank, told CNBC’s “Street Signs” on Friday. “I think it’s too early to conclude that it’s an automatic indicator that (a) recession is definitely happening and that a recession is imminent,” he said.

US-China trade

Meanwhile, investors also monitored developments on the U.S.-China trade front. A spokesperson from China’s foreign ministry said Thursday that Beijing hopes the “U.S. side will meet China half-way ” on trade issues. That statement came after China said earlier that the U.S. tariffs “seriously violated” a consensus reached by the two countries’ presidents at the G-20 summit in June. For its part, U.S. Commerce Secretary Wilbur Ross told CNBC Wednesday that a recent delay in upcoming tariffs was “not a quid pro quo ” in trade negotiations with Beijing. “The language used by both parties oozes of continued defensiveness and antagonism,” Kathy Lien, managing director of foreign exchange strategy at BK Asset Management, wrote in a Thursday note. “As long as this remains the case, investors will be nervous making it difficult for currencies and equities to rally,” Lien said.

Chinese yuan watch

On Friday, the People’s Bank of China set the official midpoint reference for the yuan at 7.0312 per dollar, weaker than expectations of 7.0306 against the greenback in a Reuters estimate. “The 7 (yuan per dollar) level, having been breached, they can now take it down as the trade war worsens.” David Roche, president and global strategist at Independent Strategy, told CNBC’s “Squawk Box” on Friday. “I expect the trade war to worsen and I expect the yuan to be at 7.35, 7.40 within a year,” Roche said. The onshore yuan was last at 7.0424 against the greenback, while its offshore counterpart traded at 7.0524 per dollar. The yuan has been closely watched since it depreciated past the 7 per dollar mark recently, leading the U.S. Treasury Department to designate China as a currency manipulator.

Asia-Pacific Market Indexes Chart

Currencies and oil


Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: eustance huang
Keywords: news, cnbc, companies, investors, indicator, dollar, treasury, asia, trade, watch, watched, china, bond, yields, market, stocks, mixed, recession, yuan


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$12.4 billion wiped off Tencent’s market value as the Chinese giant strikes a cautious note

Tencent shares slumped as much as 3.88% on Thursday after the Chinese technology giant reported a mixed bag of second-quarter results. Revenue rose 21% year-on-year to 88.82 billion yuan ($12.92 billion, according to the exchange rate published in the earnings statement). However, profit attributable to shareholders beat analyst forecasts, rising 35% year-on-year to 24.14 billion yuan. The company’s gaming division returned to growth, posting revenue of 27.3 billion yuan, up 8% year-on-year. Tha


Tencent shares slumped as much as 3.88% on Thursday after the Chinese technology giant reported a mixed bag of second-quarter results. Revenue rose 21% year-on-year to 88.82 billion yuan ($12.92 billion, according to the exchange rate published in the earnings statement). However, profit attributable to shareholders beat analyst forecasts, rising 35% year-on-year to 24.14 billion yuan. The company’s gaming division returned to growth, posting revenue of 27.3 billion yuan, up 8% year-on-year. Tha
$12.4 billion wiped off Tencent’s market value as the Chinese giant strikes a cautious note Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: arjun kharpal
Keywords: news, cnbc, companies, tencents, market, strikes, business, giant, chinese, yuan, note, value, wiped, billion, technology, cautious, second, companys, division, yearonyear


$12.4 billion wiped off Tencent's market value as the Chinese giant strikes a cautious note

Tencent shares slumped as much as 3.88% on Thursday after the Chinese technology giant reported a mixed bag of second-quarter results.

The stock later pared some losses and was down around 3% at 14:14 a.m. HK/SIN. That equated to around $12.4 billion of value being wiped out.

Revenue rose 21% year-on-year to 88.82 billion yuan ($12.92 billion, according to the exchange rate published in the earnings statement). That missed market estimates. However, profit attributable to shareholders beat analyst forecasts, rising 35% year-on-year to 24.14 billion yuan.

The company’s gaming division returned to growth, posting revenue of 27.3 billion yuan, up 8% year-on-year. Mobile games in particular were up 26%.

That was welcomed given that the Chinese government froze video game approvals last year, hurting Tencent’s business badly and wiping billions off the company’s market capitalization. Games need to be approved by the Chinese regulators before they can be released and monetized.

Gaming is Tencent’s biggest division, accounting for around 30% of revenue in the second quarter.

Another bright spot was the company’s financial technology and business services division, which includes revenues from WeChat Pay, Tencent’s wealth management product and cloud computing. That business was up 37% year-on-year to 22.9 billion yuan.

But management struck a note of caution for a number of areas. One was the advertising business, which saw a slowdown. Headwinds in that area are likely to continue, according to James Mitchell, chief strategy officer at Tencent.

“Our assumption is that the macro environment will remain difficult for the rest of the year and that the situation of the heavy supply of advertising inventory will continue for the rest of the year and potentially into next year,” he said on the company’s earnings call on Wednesday.

Tencent also reined in spending in the second quarter. Capital expenditure was down 38% compared to the year-ago period. Cash flow used for investing also dropped sharply in the first half of the year compared with the same period in 2018.

Mitchell said that was because the first half of 2018 had an “unusually rapid pace” of investment, but he did say the company was being more “measured” in how it deploys capital.


Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: arjun kharpal
Keywords: news, cnbc, companies, tencents, market, strikes, business, giant, chinese, yuan, note, value, wiped, billion, technology, cautious, second, companys, division, yearonyear


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China fixes its daily yuan midpoint at 7.0268 — weaker than expected

China’s official midpoint reference for the yuan was set at 7.0268 per the U.S. dollar on Thursday — stronger than Wednesday’s fixing, but it was weaker than what analysts had forecast. It was the sixth consecutive session where the People’s Bank of China (PBOC) fixed the midpoint at a level weaker than the psychologically important 7-yuan-per-dollar mark. The onshore yuan last traded at 7.0250. The PBOC lets the currency’s spot rate trade with a range of 2% above or below the day’s official mid


China’s official midpoint reference for the yuan was set at 7.0268 per the U.S. dollar on Thursday — stronger than Wednesday’s fixing, but it was weaker than what analysts had forecast. It was the sixth consecutive session where the People’s Bank of China (PBOC) fixed the midpoint at a level weaker than the psychologically important 7-yuan-per-dollar mark. The onshore yuan last traded at 7.0250. The PBOC lets the currency’s spot rate trade with a range of 2% above or below the day’s official mid
China fixes its daily yuan midpoint at 7.0268 — weaker than expected Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: weizhen tan
Keywords: news, cnbc, companies, daily, expected, midpoint, weaker, traded, offshore, china, yuan, 70268, chinese, dollar, bank, onshore, fixes


China fixes its daily yuan midpoint at 7.0268 — weaker than expected

A Chinese bank employee counts 100-yuan notes and US dollar bills at a bank counter in Nantong in China’s eastern Jiangsu province on August 6, 2019.

China’s official midpoint reference for the yuan was set at 7.0268 per the U.S. dollar on Thursday — stronger than Wednesday’s fixing, but it was weaker than what analysts had forecast.

Analysts were predicting the midpoint to be set at 7.0236 per dollar, according to Reuters estimates.

It was the sixth consecutive session where the People’s Bank of China (PBOC) fixed the midpoint at a level weaker than the psychologically important 7-yuan-per-dollar mark.

The onshore yuan last traded at 7.0250. On Thursday morning around 9.24 a.m. HK/SIN, the offshore yuan traded at 7.0518 against the dollar, weakening again after the yuan rebounded overnight on Tuesday — with U.S. President Donald Trump backing off on China tariffs.

The yuan depreciated past 7 per dollar last week for the first time since the global financial crisis of 2008, which prompted the U.S. Treasury Department to designate China as a currency manipulator.

Trump has repeatedly complained that a cheaper yuan will give China a trade advantage as it makes Chinese exports more attractive in international markets.

The PBOC lets the currency’s spot rate trade with a range of 2% above or below the day’s official midpoint fix and this is known as the onshore yuan. The less restrictive exchange rate used outside mainland China is known as the offshore yuan.

Investors usually look at the difference between the onshore and offshore exchange rates to determine if the Chinese central bank is manipulating the yuan.


Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: weizhen tan
Keywords: news, cnbc, companies, daily, expected, midpoint, weaker, traded, offshore, china, yuan, 70268, chinese, dollar, bank, onshore, fixes


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Japan surpasses China as largest foreign holder of US Treasurys

How the Chinese yuan is likely to perform in three trade war… The trade war between the U.S. and China is turning into a brewing currency war, say analysts. Bank of America Merrill Lynch Global Research predicts what might happen to the…Asia FXread more


How the Chinese yuan is likely to perform in three trade war… The trade war between the U.S. and China is turning into a brewing currency war, say analysts. Bank of America Merrill Lynch Global Research predicts what might happen to the…Asia FXread more
Japan surpasses China as largest foreign holder of US Treasurys Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: patti domm
Keywords: news, cnbc, companies, turning, research, perform, holder, treasurys, war, japan, trade, say, china, predicts, largest, surpasses, foreign, warthe, theasia, yuan


Japan surpasses China as largest foreign holder of US Treasurys

How the Chinese yuan is likely to perform in three trade war…

The trade war between the U.S. and China is turning into a brewing currency war, say analysts. Bank of America Merrill Lynch Global Research predicts what might happen to the…

Asia FX

read more


Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: patti domm
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Yen up as markets dismiss Trump’s trade concession, Chinese data disappoints

The yen rose on Wednesday as weaker-than-expected Chinese economic data reinforced the view that resolving the trade war was a long way off even if U.S. President Donald Trump had delayed some additional tariffs. The onshore yuan rose against the dollar, taking its cue from a stronger fixing. The dollar fell 0.41% to 106.31 yen in Asia. The Australian dollar slipped 0.6% to 72.10 yen, while the New Zealand dollar fell 0.5% to 71.77 yen. Against the offshore yuan, the dollar rose 0.5% to 7.0405 y


The yen rose on Wednesday as weaker-than-expected Chinese economic data reinforced the view that resolving the trade war was a long way off even if U.S. President Donald Trump had delayed some additional tariffs. The onshore yuan rose against the dollar, taking its cue from a stronger fixing. The dollar fell 0.41% to 106.31 yen in Asia. The Australian dollar slipped 0.6% to 72.10 yen, while the New Zealand dollar fell 0.5% to 71.77 yen. Against the offshore yuan, the dollar rose 0.5% to 7.0405 y
Yen up as markets dismiss Trump’s trade concession, Chinese data disappoints Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-14
Keywords: news, cnbc, companies, rose, yen, dismiss, yuan, markets, disappoints, dollar, united, states, data, protesters, concession, chinese, fell, trade, trumps


Yen up as markets dismiss Trump's trade concession, Chinese data disappoints

The yen rose on Wednesday as weaker-than-expected Chinese economic data reinforced the view that resolving the trade war was a long way off even if U.S. President Donald Trump had delayed some additional tariffs.

The offshore yuan remained lower against the dollar after China’s closely watched industrial output rose in July at the slowest pace in more than 17 years. The onshore yuan rose against the dollar, taking its cue from a stronger fixing.

News the United States would delay some tariffs supported Asian stocks, but optimism in the currency market quickly faded on broader concerns there are no quick solutions to the trade row, which economists say is dragging on China’s economy and threatening global growth.

Increasingly violent clashes between protesters and police in Hong Kong, worries about Britain’s exit from the European Union, and Middle East tensions mean risk aversion could quickly flare up again and roil major currencies.

“If we think only about the United States and China, there could be more room for dollar gains and yen losses, but this does not mean trade frictions have been resolved,” said Tohru Sasaki, head of Japan markets research at JP Morgan Securities in Tokyo.

“There are still a lot of geopolitical risks, such as Hong Kong, Brexit, and the Iranian situation. I don’t expect significant (risk-on) moves.”

The dollar fell 0.41% to 106.31 yen in Asia.

The Australian dollar slipped 0.6% to 72.10 yen, while the New Zealand dollar fell 0.5% to 71.77 yen.

Against the offshore yuan, the dollar rose 0.5% to 7.0405 yuan. However, in the onshore market, the yuan opened at 7.0240 per dollar, stronger than its previous close at 7.0558.

On Tuesday, U.S. President Donald Trump backed off of his Sept. 1 deadline for 10% tariffs on remaining Chinese imports, delaying duties on cellphones, laptops and other consumer goods, in the hopes of blunting their impact on U.S. holiday sales.

Still, trade negotiations between the United States and China have progressed in fits and starts, so many investors and analysts have scaled back expectations for a resolution in the near term.

China’s industrial output rose 4.8% in July from a year earlier, which was below the median estimate for a 5.8% year-on-year increase and marked the slowest growth since February 2002, data showed on Wednesday.

Retail sales and fixed-asset investment in July also grew less than forecast, highlighting concerns the trade war is damaging the health of the world’s second-largest economy.

The dollar index, measuring the greenback against a basket of six currencies, was little changed at 97.755 after jumping 0.4% on Tuesday.

Hong Kong’s airport resumed operations on Wednesday, rescheduling hundreds of flights that had been disrupted this week as protesters clashed with riot police in a deepening crisis in the Chinese-controlled city.

Ten weeks of increasingly violent clashes between police and pro-democracy protesters, angered by a perceived erosion of freedoms, have plunged the Asian financial hub into its worst crisis since it came under Chinese rule from Britain in 1997.

The euro was unchanged at $1.1152, but fell 0.43% to 118.76 yen.

European data on consumer prices and GDP is due from Europe later on Wednesday and could shape the near-term direction of the common currency.

Sterling was little changed at $1.2065, but remained within striking distance of $1.2015, the lowest level since January 2017.

Britain will release consumer price data later on Wednesday, but uncertainty about how Britain will exit the European Union has clouded the outlook for the Bank of England’s monetary policy.


Company: cnbc, Activity: cnbc, Date: 2019-08-14
Keywords: news, cnbc, companies, rose, yen, dismiss, yuan, markets, disappoints, dollar, united, states, data, protesters, concession, chinese, fell, trade, trumps


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Trade war is turning China’s local manufacturers to the domestic market, says e-commerce giant JD.com

As JD.com seeks to tap the growth potential of China’s smaller cities, the pressure is on to undercut competitors on price and quality. Meanwhile, Chinese manufacturers are finding it more expensive to sell to the U.S. given tariffs imposed on billions of dollars’ worth of goods. “Given perhaps the trade tension, more and more manufacturers will actually turn their attention to (the) domestic market,” said Sidney Huang, JD.com’s chief financial officer. Importantly, JD.com’s margin ticked up sha


As JD.com seeks to tap the growth potential of China’s smaller cities, the pressure is on to undercut competitors on price and quality. Meanwhile, Chinese manufacturers are finding it more expensive to sell to the U.S. given tariffs imposed on billions of dollars’ worth of goods. “Given perhaps the trade tension, more and more manufacturers will actually turn their attention to (the) domestic market,” said Sidney Huang, JD.com’s chief financial officer. Importantly, JD.com’s margin ticked up sha
Trade war is turning China’s local manufacturers to the domestic market, says e-commerce giant JD.com Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: evelyn cheng arjun kharpal, evelyn cheng, arjun kharpal
Keywords: news, cnbc, companies, billion, turning, ecommerce, jdcom, yuan, quality, market, huang, chinese, products, war, domestic, net, trade, local, manufacturers, giant, company


Trade war is turning China's local manufacturers to the domestic market, says e-commerce giant JD.com

Several boxes of goods, bought from JD.com, are stacked on the floor.

BEIJING — Chinese e-commerce giant JD.com sees a business opportunity in factories that have been affected by trade tensions between the world’s two largest economies, the company’s chief financial officer told CNBC on Wednesday.

As JD.com seeks to tap the growth potential of China’s smaller cities, the pressure is on to undercut competitors on price and quality. Meanwhile, Chinese manufacturers are finding it more expensive to sell to the U.S. given tariffs imposed on billions of dollars’ worth of goods. Chinese exports to the U.S. have fallen for eight straight months, according to China Customs data from Wind Information.

“Given perhaps the trade tension, more and more manufacturers will actually turn their attention to (the) domestic market,” said Sidney Huang, JD.com’s chief financial officer.

“This is a phenomena actually already happening for quite some time, slowly, that there are excess capacities for those manufacturing facilities,” Huang said. “So there are a lot of very, very low-priced products at good quality they used to produce (as) branded products for global brands. So we think it’s a good opportunity for us to reach down to those quality manufacturers, so we can provide those products at a really good value to our consumers.”

JD.com’s shares surged nearly 13% in New York trading overnight after the company delivered second quarter numbers showing exactly what the market wanted — profitability.

On Tuesday, the Chinese e-commerce giant reported these results for the June quarter:

Net revenue of 150.3 billion yuan ($21.9 billion), a 22.9% year-on-year rise

Net income attributable to ordinary shareholders of 618.8 million yuan ($90.1 million), compared to a net loss in the same period last year.

Importantly, JD.com’s margin ticked up sharply and management raised adjusted net income guidance to between 8 billion yuan and 9.6 billion yuan for the full year. JD has reported full year losses for the past three years. That improving profitability picture helped propelled shares higher in U.S. trade on Tuesday, with the company adding about $5 billion to its market capitalization.

“The street didn’t expect them to do well on the bottom line … this is not (just) going to be the first time, it’s going to be the beginning of a new trend,” Tian Hou, founder and CEO of T.H. Capital, told CNBC’s “Street Signs” on Wednesday.

For CFO Huang, the latest results indicate that the company’s spending on warehouses, delivery people and other investments are beginning to pay off. He pointed out that fulfillment expenses as a percentage of net revenues decreased to 6.1% in the second quarter, the lowest since the company went public in 2014. The IPO was the last time Huang spoke with the media before sitting down on Wednesday with CNBC, he said.

Fulfillment costs overall did rise, even if the ratio fell. But the company also revealed Tuesday that its logistics business broke even from an operating income perspective.

“We are seeing operating leverage,” Huang said, noting that July sales numbers are pretty robust.


Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: evelyn cheng arjun kharpal, evelyn cheng, arjun kharpal
Keywords: news, cnbc, companies, billion, turning, ecommerce, jdcom, yuan, quality, market, huang, chinese, products, war, domestic, net, trade, local, manufacturers, giant, company


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China fixes its daily yuan midpoint at 7.0312 — stronger than expected

China’s central bank set the official midpoint reference for the yuan at 7.0312 per dollar on Wednesday — stronger than Tuesday’s fixing, and stronger than what analysts had predicted. The onshore yuan last traded at 7.0558 in Tuesday’s session, and on Wednesday morning around 10.00 a.m. HK/SIN was at 7.0236. The offshore yuan traded at 7.0397 against the dollar, slightly weaker than Tuesday’s close but stronger than the end of last week, when it hovered around the 7.09 level. The PBOC lets the


China’s central bank set the official midpoint reference for the yuan at 7.0312 per dollar on Wednesday — stronger than Tuesday’s fixing, and stronger than what analysts had predicted. The onshore yuan last traded at 7.0558 in Tuesday’s session, and on Wednesday morning around 10.00 a.m. HK/SIN was at 7.0236. The offshore yuan traded at 7.0397 against the dollar, slightly weaker than Tuesday’s close but stronger than the end of last week, when it hovered around the 7.09 level. The PBOC lets the
China fixes its daily yuan midpoint at 7.0312 — stronger than expected Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: weizhen tan huileng tan, weizhen tan, huileng tan
Keywords: news, cnbc, companies, yuan, offshore, dollar, bank, fixes, stronger, expected, daily, weaker, china, 70312, tuesdays, midpoint, onshore


China fixes its daily yuan midpoint at 7.0312 — stronger than expected

China’s central bank set the official midpoint reference for the yuan at 7.0312 per dollar on Wednesday — stronger than Tuesday’s fixing, and stronger than what analysts had predicted.

It was, still, the fifth consecutive session where the People’s Bank of China (PBOC) fixed the midpoint at a level weaker than the psychologically important 7-yuan-per-dollar mark.

Analysts were predicting the midpoint to be set at 7.0502 per dollar, according to Reuters estimates. The onshore yuan last traded at 7.0558 in Tuesday’s session, and on Wednesday morning around 10.00 a.m. HK/SIN was at 7.0236. The offshore yuan traded at 7.0397 against the dollar, slightly weaker than Tuesday’s close but stronger than the end of last week, when it hovered around the 7.09 level.

The yuan depreciated past 7 per dollar last week for the first time since the global financial crisis of 2008, which prompted the U.S. Treasury Department to designate China as a currency manipulator.

A weaker currency makes a country’s exports more attractive in international markets and U.S. President Donald Trump has complained that a cheaper yuan will give China a trade advantage.

The PBOC lets the currency’s spot rate trade with a range of 2% above or below the day’s official midpoint fix and this is known as the onshore yuan. The less restrictive exchange rate used outside mainland China is known as the offshore yuan.

Investors usually look at the difference between the onshore and offshore exchange rates to determine if the Chinese central bank is manipulating the yuan.

According to David Dollar, a Brookings Institution senior fellow, China is not manipulating its currency.

“Given the tariffs that the U.S. has imposed on China, it’s natural for the Chinese currency to depreciate. Most emerging market currencies are depreciating against the dollar if you look at the last half year or so,” he told CNBC on Wednesday.

Due to slowing growth and investment in China, the yuan could even continue to gradually weaken up to 7.2 against the dollar, said Max Lin, emerging markets Asia strategist at NatWest Markets.

Despite that, the possibility of investors moving their money out of China due to the weakening yuan is limited, he said.

“I don’t expect any capital flight concerns to actually occur, just because I think any kind of weakness from here on out would be very gradual. If there are signs of panic dollar buying onshore, I think at that point, the central bank of China would definitely step in to stabilize the yuan,” he told CNBC on “Squawk Box.”

— CNBC’s Saheli Roy Choudhury contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: weizhen tan huileng tan, weizhen tan, huileng tan
Keywords: news, cnbc, companies, yuan, offshore, dollar, bank, fixes, stronger, expected, daily, weaker, china, 70312, tuesdays, midpoint, onshore


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China fixes its yuan midpoint at 7.0326 per dollar, stronger than…Analysts were predicting the midpoint to be set at 7.0421 per dollar after the yuan last traded at 7.0578 in Monday’s session, according to Reuters estimates. China Economyread more


China fixes its yuan midpoint at 7.0326 per dollar, stronger than…Analysts were predicting the midpoint to be set at 7.0421 per dollar after the yuan last traded at 7.0578 in Monday’s session, according to Reuters estimates. China Economyread more
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Company: cnbc, Activity: cnbc, Date: 2019-08-13  Authors: joanna tan
Keywords: news, cnbc, companies, mondays, riverside, yuan, midpoint, dollar, set, officer, injured, gun, killed, traded, thananalysts, stronger, session, predicting, battle, california


One California police officer killed, two injured in Riverside gun battle

China fixes its yuan midpoint at 7.0326 per dollar, stronger than…

Analysts were predicting the midpoint to be set at 7.0421 per dollar after the yuan last traded at 7.0578 in Monday’s session, according to Reuters estimates.

China Economy

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Company: cnbc, Activity: cnbc, Date: 2019-08-13  Authors: joanna tan
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