Chinese Stocks Listed in the US Are Having Their Best Month Ever
Whether you’re an investor in Chinese stocks listed in the US or a trader looking to capitalize on Chinese growth, this month has been a good one. Copper prices have risen 8.6%, and the price of Nickel has jumped 20.9%, as trade tensions between the US and China have continued to rise since the start of the trade war.
Copper prices have gained 8.6%
Among the many Chinese firms listed in the US, a few companies have been able to get a jump start on the competition, including a Chinese behemoth, Alibaba. With over a quarter of a billion users and a $1 billion market cap, the Chinese firm has had a good run and is set to make its presence known in the coming months.
While the Chinese company’s top line revenue is up 12.9% in the first quarter, its bottom line is down a notch. However, the yuan did make a hefty 1.3% jump against the dollar in offshore trading. Despite this, Chinese stocks are still down about 17% year over year, a figure that is likely to continue. Nonetheless, despite the negatives, it’s still a good time to be an investor in China.
While it’s hard to deny that China has been a source of much ire over the years, its political class has had a long tradition of being opaque and opaque. In addition to being the home of the Great Wall of China, China is also a leading actor in the infectious disease space. While the number of cases is down, it’s still high enough to make the country one of the world’s largest players. Fortunately, vaccines are on the horizon.
Nickel has gained 20.9%
Traders are looking to a reversal of the base metals trend, after losses earlier in the week. A stronger Euro helped reverse the base metal’s losses, although it was not enough to keep the market moving upward.
Traders continue to bet that the steel and stainless steel industries will recover in the months ahead. Despite this optimism, traders are not completely convinced. This could mean a further decline in the price of nickel.
A record supply of nickel, along with a deteriorating economic climate, could lead to a downturn in the price of nickel. This has been illustrated by a drop in nickel premiums to their lowest levels since 2009.
Prices of nickel have been falling at the LME for the past week. This could be a sign that the market is entering a surplus period, with production of nickel pig iron beginning to ramp up in China. This could mean that consumption of nickel is under-tapped in emerging markets.
US regulators want “unencumbered access” to the Chinese auditors
Despite its glitzy new headquarters, Beijing has still not come to grips with the state of the art and the nirvana of a modern financial regulatory system, and is prone to the occasional misstep. So, the US is doing everything in its power to woo Beijing to the table. The latest move was a revised set of rules that require overseas listed companies to seek Beijing’s blessing before opening their books to the Big Apple’s regulators.
One of the more mundane tasks involved in that process was the creation of a list of noncompliant auditors, a task that would have piqued the curiosity of any seasoned Washington bureaucrat. While the Chinese have long had restrictions on how audit paperwork could be transferred overseas, the US has been using the list to identify noncompliant firms in an effort to nudge the big boys in the right direction.
The aforementioned rules and the aforementioned acronym have not been rolled out in a big way, and there is still no word on whether the Chinese are serious about reforming their internal auditing snobbery.
Sino-US tensions have continued to rise since the start of the trade war
Increasing tensions between the US and China are threatening to weaken trade relations between the two countries. These tensions are not only negative for the countries, but they can also depress global growth. It is important to assess the long-term impact of these tensions. The most obvious effect is through trade. However, the long-term impact of these tensions may affect other areas of international relations, such as global health, environmental degradation, and the proliferation of weapons of mass destruction.
The United States and China have engaged in a series of contentious disputes since the mid-1990s. Their relationship is also influenced by ideological differences. Despite these differences, both countries have made efforts to improve their relationship. However, the relationship remains difficult. There are several factors that determine their interactions, including domestic developments in China and U.S. foreign policy goals.
The most significant recent source of tensions between the PRC and the US is Taiwan’s status and future. The future of Taiwan is likely to pose a difficult set of problems for all three governments. The medium-term future of the relationship depends on social change and economic development in China. It also will depend on whether the United States and China will find ways to improve their relationship.