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China’s reopening to congregation fluctuated as concerns about growth weighed on stocks

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(Bloomberg) — Hong Kong-listed Chinese stocks suffered a rout late in the day, as investors saw the road to reopening as rocky and prospects for an economic recovery uncertain.

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Hang Seng China Enterprises closed down 3.3%, its worst day in more than a month, as technology and real estate stocks fell. A post-lunch rally prompted by China’s 10 new measures to deal with Covid-19, which included scrapping testing rules in most public places across the country, quickly evaporated.

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As doubts persisted about the path leading to the reopening of Asia’s largest economy, market participants rushed to book profits after sporadic hikes. There are also concerns about a possible spike in infections and more disruption to the economy next year, even as top officials are said to be discussing a growth target of around 5%.

“Although the market is still trading on positive expectations, we are not completely out of the dangers, as we still have to get through the panic that may come with the first wave of infections,” said Ma Xuzhen, a fund manager at Longquan. Investment management.

Country Garden Holdings fell 15%, losing the most in the Hang Seng China index, after it raised $619 million through a stock offering — its second offering in a month. A gauge of Hong Kong-listed technology stocks fell by the most since November 3.

The Macau gaming stock index closed down 1.9% after jumping as much as 9.5% as authorities said they would follow the mainland in easing Covid restrictions.

Sentiment was worsened by weak trade data, with Chinese exports and imports contracting at a sharper pace in November. The Hang Seng fell 3.2% while the mainland CSI 300 closed down 0.3%.

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“Uncertainties remain high,” particularly with regard to how disruptive the exit from Covid-Zero will be and whether policymakers are prepared to take advantage of the economy, economists at Macquarie International Services Limited including Larry Hu wrote in a note.

– With the help of April Ma.

(Adds technology sale details in the fifth paragraph, and updates prices all the time)

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MicroStrategy is at its lowest level since 2020 after the sales were revealed

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(Bloomberg) — Shares of MicroStrategy touched their lowest level since August 2020 after the enterprise software company, which in recent years has been known as the largest buyer of bitcoin, revealed its first sale of the token.

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The stock fell 1.1 percent to $136.63 on Thursday, down 75 percent this year. Bitcoin rose less than 1% to around $16,590 and is believed to have fallen 64% since the start of the year.

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In a filing on Wednesday, MicroStrategy said it acquired approximately 2,395 Bitcoin between the beginning of November and December 21 through its subsidiary MacroStrategy, and paid out approximately $42.8 million in cash. It then sold 704 of the tokens on Dec. 22 for a total of about $11.8 million, citing tax purposes, before buying another 810 of them two days later.

Matt Malley, chief market strategist for Miller Tabak + Co. Step down as CEO. This news means they don’t seem to want to do that anytime soon.”

Overall, MicroStrategy held about 132,500 bitcoins worth over $4 billion USD as of December 27th. The company paid an average purchase price of $30,397 per bitcoin.

“Given MicroStrategy’s $2.4 billion in leverage, we believe the company may have a lot of leverage over Bitcoin, and may face some liquidity risk,” Jefferies analyst Brent Thiel wrote in a note on Wednesday. Thill has an “underperform” rating on the stock and a price target of $110.

Over the years of the pandemic, MicroStrategy has become well known for its Bitcoin takeovers, largely led by Saylor. Earlier this year, Saylor stepped down from that role and now serves as CEO at the company and continues to lead its bitcoin strategy.

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MicroStrategy was trading around $120 before Saylor first announced the company’s Bitcoin purchases in 2020. The stock reached an all-time high of $1,315 in February 2021.

(Updates to include the stock’s closing price in the second paragraph.)

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Bankman-Fried May File Petition in New York Federal Court Next Week Before Judge Louis Kaplan By Cointelegraph

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Former FTX CEO Sam Bankman-Fried is set to appear in court on the afternoon of January 3 to enter a lawsuit over two counts of wire fraud and six counts of conspiracy against him related to the collapse of cryptocurrency exchange FTX, according to Reuters. mentioned on December 28, citing court records. Bankman-Fried will appear before District Judge Lewis Kaplan in Manhattan.

Judge Kaplan was appointed to hear the case on December 27 after the original judge in the case, Ronnie Abrams, Resigned herself because of connections between FTX and the law firm Davis Polk & Wardwell, where her husband is a partner. The company provided advisory services to FTX in 2021.