Chinese language share buybacks soar to document excessive

In in the present day’s e-newsletter:

• A possible thaw in China-India relations

• North Korea’s alleged involvement within the Ukraine warfare

• Sikh separatist chief vows to maintain combating India from Toronto

Good morning. Share buybacks on mainland China’s largest exchanges have soared to a document excessive this yr as Beijing pushes for corporations to return money to shareholders as a part of its efforts to revive a flagging inventory market.

There have been Rmb235bn ($33bn) in buybacks throughout mainland-listed shares to this point in 2024, greater than double final yr’s complete and much surpassing the earlier document of Rmb133bn in 2022, in accordance with Chinese language monetary information supplier Wind.

The frenzy of share repurchases comes as China’s authorities unleashes the largest spherical of financial stimulus for the reason that Covid-19 pandemic.

The benchmark CSI 300 index has risen greater than 20 per cent over the previous month amid Beijing’s bid to breathe new life into its fairness market after years of dismal efficiency.

Jason Bedford, a China banking analyst previously at UBS and asset supervisor Bridgewater, stated Beijing was searching for an fairness rally by encouraging buybacks. “Clearly, the government has been pushing this throughout the year,” he stated. Learn extra concerning the central financial institution scheme.

• Chinese language financial system: Beijing unveiled a few of its largest cuts to benchmark lending charges in years as the federal government stepped up efforts to hit its year-end goal of about 5 per cent progress in gross home product.

Right here’s what else I’m maintaining tabs on in the present day:

• Financial information: Hong Kong studies September inflation information and South Korea releases its producer value index.

• Brics summit: Leaders of Brics nations collect in Kazan, Russia. India’s Narendra Modi and China’s Xi Jinping are each resulting from attend.

• World financial system: The IMF publishes its newest World Financial Outlook, a twice-yearly evaluation and projections of financial prospects for the worldwide financial system, plus its World Monetary Stability Report.

5 extra high tales

1. India and China have reached an settlement on patrolling preparations alongside their disputed border, a senior Indian official has stated, paving the way in which for an easing of tensions between the 2 nations. Clashes between the 2 sides on the frontier in japanese Ladakh in 2020 left a minimum of 24 troops, largely Indians, lifeless.

2. South Korea has referred to as on Russia to cease the deployment of North Korean troops to battle on Moscow’s aspect in Ukraine, amid allegations by Seoul and Ukraine that North Korean commandos are on Russian territory and getting ready for battle. Right here’s what we find out about Pyongyang’s alleged involvement within the Ukraine battle.

3. Iran’s foreign money and shares have declined and most international airways have suspended flights in anticipation of an Israeli retaliatory assault on the Islamic republic. Many Iranians are actually deeply anxious concerning the prospect of a possible warfare between Iran and Israel, which has vowed a “precise and deadly” response after Tehran’s ballistic missile strike earlier this month.

4. Disney has appointed former Morgan Stanley boss James Gorman as its chair and introduced plans to call a brand new chief government in “early 2026”. That is the primary time the media large has set a timeline for the most drawn-out and consequential succession saga in Hollywood.

5. Kamala Harris raised almost $1bn previously three months, as she surged previous Donald Trump within the cash race to amass an enormous marketing campaign warfare chest for the ultimate stretch of the US presidential election. The Democratic candidate pulled in extra cash from July to the tip of September than the previous Republican president has managed since January 2023.

Information in-depth

Inderjeet Singh Gosal says he’s not afraid to die for an impartial Sikh homeland in India’s Punjab area. The 35-year-old’s declaration sounds incongruous as he sits in his snug house in Toronto’s suburbs. However after the assassination of Hardeep Singh Nijjar, his predecessor as head of the Khalistan motion, the danger is actual. The deadly capturing of Nijjar in Vancouver final yr has led to more and more fraught relations between Ottawa and New Delhi.

We’re additionally studying . . . 

• What the world thinks of Harris vs Trump: Strongman leaders across the globe would welcome a victory for the Republican former president, writes Gideon Rachman.

• Lebanon’s sectarian tensions: Israel’s bombing marketing campaign threatens the fragile steadiness between Lebanon’s three essential non secular teams.

• Purchase now, pay later: The fast-growing client finance phenomenon has lower form-filling and prolonged credit score checks for households in want of borrowing. However its very frictionlessness heightens the potential for debt to spiral, writes Patrick Jenkins.

Chart of the day

Buying and selling on this planet’s second-largest IPO of 2024 begins in the present day, however retail traders have already given a lukewarm reception to the $3.3bn itemizing of Hyundai Motor India, amid a slowdown in automobile gross sales within the nation. The weak early bidding for Hyundai’s Mumbai providing was in distinction to different blockbuster floats this yr in India, with its inventory market turning into the world’s largest itemizing venue exterior the US.

Take a break from the information

Sunreef Yachts started in the identical Lenin shipyard in Gdańsk the place Lech Wałęsa beforehand labored and began the Solidarity opposition motion that helped topple Poland’s communist regime. Again then it was aimed primarily at middle-class consumers. Now it’s producing luxurious catamarans for shoppers together with Rafael Nadal and Julio Iglesias.

Extra contributions from Gordon Smith and Irwin Cruz