Chinese equities decline following release of soft housing data
Chinese equities on the mainland and in Hong Kong opened down on Wednesday following the release of official housing data for December, highlighting weak sentiment due to an ongoing property downturn.
Hong Kong’s Hang Seng index fell 2.1 per cent in early trading, while the CSI 300 dropped 0.9 per cent. The Hang Seng Mainland Properties index, which tracks large listed developers, shed as much as 3.4 per cent following the release of official housing price data for December.
The National Bureau of Statistics said new home prices in first-tier cities declined 0.4 per cent from the previous month. An index for secondary housing prices in first-tier cities showed home values fell 1.1 per cent.
Chinese economy beats forecasts to expand 5.2% in 2023
China’s gross domestic product grew 5.2 per cent in 2023, slightly beating Beijing’s official target as the world’s second-largest economy grappled with a property sector crisis, falling exports and deflationary pressure.
The GDP figure was equal to a forecast of 5.2 per cent from an analyst poll by Reuters but exceeded the government’s official target of 5 per cent. It also outpaced growth of just 3 per cent in 2022, when the economy was hit by Beijing’s draconian zero-Covid restrictions.
China’s premier Li Qiang on Tuesday pre-empted the official data release by the National Bureau for Statistics, announcing at the World Economic Forum in Davos that the country’s economy had expanded an “estimated” 5.2 per cent.
What to watch in Asia today
Events: China’s National Bureau of Statistics announces population data for 2023.
Economic indicators: China releases a raft of key data, including fourth-quarter gross domestic product growth and December figures for house prices, industrial production and retail sales. Premier Li Qiang told an audience at Davos on Tuesday that the country’s economy grew about 5.2 per cent last year. In Japan, the Reuters Tankan index for January is released and Singapore announces non-oil exports for December. Japan National Tourism Organization is expected to release full-year visitor numbers for 2023.
Corporate updates: India’s Larsen & Toubro Infotech, Zee Entertainment Enterprises and Asian Paints announce results.
BP to appoint interim boss Murray Auchincloss as chief executive
BP has decided to appoint interim boss Murray Auchincloss as its permanent chief executive, with the energy company expected to announce the move as early as Wednesday, according to people familiar with the matter.
The selection of Auchincloss, BP’s former chief financial officer, ends months of uncertainty following the abrupt resignation of Bernard Looney in September for failing to disclose past relationships with colleagues.
BP conducted an internal and external search for Looney’s replacement and has once again decided to promote someone from within the business. BP has never hired a chief executive from outside the company in its 113-year history.
Read more here.
Boeing names retired admiral as leader of quality management review
Boeing has named a retired Navy admiral to lead an independent review of its quality management systems as the US plane maker tries to stem the fallout from a damaging breach in the fuselage of an Alaska Airlines aircraft 11 days ago.
The company said Kirkland Donald and a team of “outside experts” would provide recommendations to chief executive Dave Calhoun and the Boeing board.
Boeing said on Monday it would bring in an external party to review its processes, while also allowing airline customers of its 737 Max aircraft to oversee factory procedures.
The planemaker’s shares fell almost 8 per cent on Tuesday.
Judge blocks JetBlue’s proposed $3.8bn takeover of Spirit Airlines
JetBlue Airways’ proposed $3.8bn acquisition of Spirit Airlines has been blocked by a US federal judge on grounds it would violate antitrust laws.
Judge William Young on Tuesday halted the companies from closing the deal after US authorities and states last year sued to halt the transaction because it would reduce competition in the passenger aviation industry.
“[I]f JetBlue were permitted to gobble up Spirit — at least as proposed — it would eliminate one of the airline industry’s few primary competitors that provides unique innovation and price discipline,” Young wrote.
Shares of JetBlue rose 5.9 per cent, while shares of Spirit sank 55 per cent.
Read more here.