China stock investors, already disillusioned by Beijing's lower-than-expected economic growth target for the year, will be further disheartened by the shock collapse of U.S. lender SVB Financial Group, market participants said.
Although the event will unlikely trigger another financial crisis, it could have a negative psychological impact on China markets, he said.said on Saturday that it has a sound corporate structure and an independently operated balance sheet, in an apparent effort to pacify local clients.
Lower risk appetite could mute any excitement from an expansion of the China-Hong Kong Stock Connect on Monday. More than 1,000 China-listed A-shares, and nearly 200 Hong Kong-traded stocks will be added to the cross-border investment scheme.Li Bei, fund manager at Shanghai-based hedge fund house Banxia, said she has slashed stock holdings, and will "maintain a relatively low exposure", citing a lack of good opportunities.
Derek Lin, a portfolio manager with Boston-based Columbia Threadneedle Investment, said the government "does need a good year" but isn't rushing to launch big stimulus, so "the market is trying to get excited, but there is some hesitancy." Still, domestic A-shares will likely outperform offshore China stocks, which are more vulnerable to potential spillover from the SVB collapse, analysts say.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Silicon Valley Bank scrambles to sell itself after failing to raise capital: report“Large financial institutions” are exploring a potential acquisition of SVB Financial.
Read more »
SVB Financial stock slides 42% premarket as fears of a potential run on the bank continueSVB Financial Group the parent of Silicon Valley Bank, saw its stock tumble more than 42% in premarket trade Friday, in a continued response to reports late...
Read more »
Analysts see a buying opportunity in this financial stock in particular amid SVB-fueled sell-offShares of this financial services name dropped nearly 13% on Thursday. Analysts believe the sell-off presents an attractive entry point.
Read more »
Futures dip as SVB Financial extends rout, payrolls data awaitedU.S. stock index futures fell on Friday as the selloff in SVB Financial shares extended into premarket trading, while investors awaited a key jobs report for more clues on the Federal Reserve's monetary policy path.
Read more »
Stocks making the biggest moves premarket: SVB Financial, Allbirds, DocuSign and moreShares of the company known as Silicon Valley Bank extended their big slide from Thursday.
Read more »
Analysts downgrade SVB Financial as uncertainty around tech-focused bank loomsConfidence around the stock dropped after SVB Financial announced a plan to raise more than $2 billion in capital to help offset losses on bond sales.
Read more »