VIEWS & ANALYSIS
China’s population expected to start to shrink before 2025, new births in several provinces hit lowest in 60 years
The number of new births in several Chinese provinces hit the lowest in 60 years in 2021 and official now expect the country’s population to start to shrink ahead of 2025. Some experts say that China’s birth rate will continue to shrink for “more than a century.”
Asian Development Bank lowers forecast of developing Asia’s 2022 GDP growth, citing China’s zero-Covid policy
The Asian Development Bank lowered its forecast for GDP growth in developing Asia in 2022, saying that China’s zero-tolerance to Covid creates ripple effects on regional supply chains and economic development.
UBS keeps Buy rating for HKEX, with target price of HK$480
UBS believed mutual market access with mainland China would remain a major investment theme for the Hong Kong Exchanges and Clearing (HKEX) and recent key developments include the ETF Connect and the Swap Connect.
CICC’s ratings and target prices on Chinese property developers
China international Capital Corporation (CICC)’s ratings and target prices for Chinese property developers:
Goldman Sachs, CLSA, Jefferies slashed stock price target for Pop Mart
CLSA lowers the rating for Chinese designer toymaker Pop Mart to Outperform from Buy and slashed the highest stock price target by 48% to HK$26 from HK$50.
Macau casinos trade lower on weak performance in Q2, Morgan Stanley lowers forecast of Macau gaming revenue
Shares of Macau’s casino operators are trading lower in Hong Kong as weak performance in the second quarter. As of 11:57 am local time, shares of Galaxy Entertainment is down 2.3%, SJM Holdings down 2.2%, Sands China down 2.1% and MGM China down 1.5%.
CICC expects Tencent’s Q2 adjusted net profit to slide 20% on year, lowers price target by 4%
China International Capital Corporation (CICC) forecast Tencent Holdings’ revenue in the second quarter ended June 30 to drop by 3% year over year to 133.9 billion yuan, and the adjusted net profit to slide by 20% to 27.3 billion yuan, according to a note on Monday.
Citigroup, Credit Suisse raised forecast of Meituan’s revenue on faster-than expected recovery
Citigroup raised the forecast of Chinese on-demand service giant Meituan’s food delivery revenue and operating profit in Q2 by 2.4% and 11.7%, respectively, taking into account the reopening of restaurants in China, robust demand during Father’s Day and Dragon Boat festival, disciplined subsidies and cost optimization effort, according to a note on Monday.