SHANGHAI: Foreign buying of Chinese stocks was tepid on Thursday as benchmark indexes rose on the last trading day before mainland shares join MSCI’s emerging markets index.
The rebalancing of portfolios by global fund managers, as well as from some active investors, had led to expectations that there could be a jump in foreign investment to China’s capital markets.
The June 1 inclusion will see around 230 Chinese large-cap stocks, known as A shares, added to MSCI’s emerging markets benchmark index with a 2.5 percent partial inclusion factor. The second phase of the inclusion will take place on Sept. 3.
China’s MSCI entry will integrate the world’s second-biggest equity market, with a total stock market capitalization of more than $8 trillion, into the global financial system.
On Wednesday, MSCI tweaked the final list of companies, dropping embattled Chinese telecommunications gear maker ZTE Corp. and four other firms whose shares have been suspended from trading.
Over the past two months, foreign investors have been ramping up investment in Chinese shares, including retailer Wangfujing Group, Shanghai Flyco Electrical Appliance and spirit maker Sichuan Swellfun , despite rising volatility triggered by fears of a Sino-US trade war.
ZTE has been caught in the crossfire of the dispute and trading in its shares has been halted for two weeks.
While fund manager strategies are hard to predict, many analysts have forecast inflows of $10 billion around June 1. Passive fund managers seeking to replicate the index are widely expected to buy some $1 billion of A-shares during the final hour of trading on Thursday.
By the midday trading break, northbound flows into Shanghai and Shenzhen amounted to about 3.85 billion yuan ($601.2 million) — a fraction of the more than 100 billion allowed each day, but still higher than in recent days.
“I expect foreign inflows will pick up toward the end of trading day as passive funds are obliged to buy China stocks ahead of the inclusion,” said Yang Hai, strategist at Kaiyuan Securities.
“To some extent, it would help lift sentiment in a weak market,” he said, noting that foreign demand may have guided some domestic money into banking and consumer stocks.
Although the MSCI-related inflows will initially be small compared to the size of China’s stock market, inclusion in the global index will spawn other funds and boost interest in Chinese companies.
“On a longer-term basis, the opening of China’s capital markets represents a once-in-a-lifetime market event and will be one of the primary ongoing themes in the region for many years to come,” said Will Stephens, Deutsche Bank equity strategist.
More foreign participation in Chinese stocks could help improve investment culture, and press China-listed firms to bolster their corporate governance, said Bin Shi, head of China Equities at UBS Asset Management.
“Index inclusion will bring more long-term institutional investors into the A-shares market...which will change the market structure,” Shi said, noting that the market is currently dominated by retail investors.
“As overseas investors become more active in the market, so listed companies in China will be under tougher scrutiny and they’ll have to bring their disclosure and governance practices into line with international standards.”
Foreign flows into China stocks tepid ahead of MSCI inclusion
Foreign flows into China stocks tepid ahead of MSCI inclusion
- Inclusion in the global index will spawn other funds and boost interest in Chinese companies
- More foreign participation in Chinese stocks could help improve investment culture, and press China-listed firms to bolster their corporate governance
The world begins welcoming 2025 with light shows, embraces and ice plunges
- More than a million people gathered at the Sydney Harbor for the celebration
- Much of Japan has shut down ahead of the nation’s biggest holiday
WELLINGTON, New Zealand: From Sydney to Mumbai to Nairobi, communities around the world began welcoming 2025 with spectacular light shows, embraces and ice plunges.
Auckland became the first major city to celebrate, as thousands thronged downtown or climbed the city’s ring of volcanic peaks for a fireworks vantage point. A light display recognized Indigenous people.
Countries in the South Pacific Ocean were the first to ring in the New Year, with midnight in New Zealand striking 18 hours before the ball drop in Times Square in New York.
Conflict muted acknowledgements of the start of 2025 in places like the Middle East, Sudan and Ukraine.
Earliest fireworks
Fireworks blasted off the Sydney Harbor Bridge and across the bay. More than a million Australians and others gathered at iconic Sydney Harbor for the celebration. British pop star Robbie Williams led a singalong with the crowd.
The celebration also featured Indigenous ceremonies and performances that acknowledged the land’s first people.
Asia prepares for Year of the Snake
Much of Japan shut down ahead of the nation’s biggest holiday, as temples and homes underwent a thorough cleaning.
The upcoming Year of the Snake in the Asian zodiac is heralded as one of rebirth — alluding to the reptile’s shedding skin. Other places in Asia will mark the Year of the Snake later, with the Lunar New Year.
In South Korea, celebrations were cut back or canceled during a period of national mourning following Sunday’s crash of a Jeju Air flight in Muan that killed 179 people.
In Thailand’s Bangkok, shopping malls competed for crowds with live musical acts and fireworks shows. A fireworks display in Indonesia’s Jakarta featured 800 drones.
China and Russia exchange goodwill
Chinese state media covered an exchange of New Year’s greetings between leader Xi Jinping and Russian President Vladimir Putin in a reminder of growing closeness between two leaders who face tensions with the West.
Xi told Putin their countries will “always move forward hand in hand,” the official Xinhua News Agency said.
China has maintained ties and robust trade with Russia since the latter invaded Ukraine in 2022, helping to offset Western sanctions and attempts to isolate Putin.
Seaside celebrations and beyond
In India, thousands of revelers in the financial hub of Mumbai flocked to the city’s bustling promenade facing the Arabian Sea. In Sri Lanka, people gathered at Buddhist temples to light oil lamps and incense sticks and pray.
In Dubai, thousands attended a fireworks show at the Burj Khalifa, the world’s tallest skyscraper. And in Nairobi, Kenya, scattered fireworks were heard as midnight approached.
A Holy Year begins
Rome’s traditional New Year’s Eve festivities have an additional draw: the start of Pope Francis’ Holy Year, the once-every-quarter-century celebration projected to bring some 32 million pilgrims to the Eternal City in 2025.
On Tuesday, Francis will celebrate a vespers at St. Peter’s Basilica, followed by Mass on Wednesday, when he is expected to again appeal for peace in Ukraine and the Middle East.
Jan. 1 is a day of obligation for Catholics, marking the Solemnity of Mary.
Paris recaptures the Olympic spirit
Paris capped a momentous 2024 with its traditional countdown and fireworks extravaganza on the Champs-Elysées. The city’s emblematic Arc de Triomphe monument was turned into a giant tableau for a light show that celebrated the city’s landmarks and the passage of time, with whirring clocks.
“Paris is a party,” proclaimed Mayor Anne Hidalgo.
The Summer Olympics and Paralympic Games hosted in the French capital from July to September had transformed the city into a site of joy, fraternity and astonishing sporting achievements.
Frank and Rowena Klar from San Francisco visited the French capital to celebrate 31 years together. “If you start it big, we think we’re going to have a great year,” he said.
Wintry weather, for good and bad
London rang in the New Year with a pyrotechnic display along the River Thames. With a storm bringing bitter weather to other parts of the United Kingdom, however, festivities in Edinburgh, Scotland, were canceled.
But in Switzerland and some other places, people embraced the cold, stripping and plunging into the water in freezing temperatures.
Rio expects 2 million revelers
Rio de Janeiro will throw Brazil’s main New Year’s Eve bash on Copacabana Beach, with ferries offshore bearing 12 straight minutes of fireworks. Thousands of tourists in cruise ships will witness the show up close.
More than 2 million people were expected at the Copacabana, hoping to squeeze into concerts by superstar Brazilian artists such as pop singer Anitta and Grammy-award winner Caetano Veloso.
American traditions, old and new
In New York City, the organization managing Times Square has tested its famous ball drop and inspected 2025 numerals, lights and thousands of crystals as part of a tradition going back to 1907. This year’s celebration will include musical performances by TLC, Jonas Brothers, Rita Ora and Sophie Ellis-Bextor.
Las Vegas’ pyrotechnic show will be on the Strip, with 340,000 people anticipated as fireworks are launched from the rooftops of casinos. Nearby, the Sphere venue will display for the first time countdowns to midnight in different time zones.
In Pasadena, California, Rose Parade spectators were camping out and hoping for prime spots. And some 200,000 people were flocking to a country music party in Nashville, Tennessee.
American Samoa will be among the last to welcome 2025, a full 24 hours after New Zealand.
Israel says intercepted two projectiles fired from central Gaza
- The military said it has intercepted several rockets fired from northern Gaza in recent days
JERUSALEM: Israel’s military said two projectiles were fired from Gaza on Wednesday in the first minutes of the new year, one of which was intercepted while the other landed in an open area.
Alert sirens sounded around midnight (2200 GMT) in the western Negev, the Israeli military said, and “two projectiles were identified crossing from the central Gaza Strip into Israeli territory.”
“One projectile was successfully intercepted and the second projectile fell in an open area,” the army said on Telegram.
The military said it has intercepted several rockets fired from northern Gaza in recent days.
Since October, Israeli operations in Gaza have focused on the north, with officials saying their land and air offensive aims to prevent Hamas from regrouping.
The Gaza war was triggered by the unprecedented Hamas-led October 7, 2023, attack on Israel, which resulted in 1,208 deaths — mostly civilians — according to an AFP tally of Israeli official figures.
Israel’s retaliatory military campaign has killed more than 45,500 people in Gaza, a majority of them civilians, according to figures from the Hamas-run territory’s health ministry.
The UN considers those figures reliable.
New year hope reigns in a Damascus freed from Assad
- More than half a million people died in the 13-year civil war as the country split into different regions controlled by various warring parties
DAMASCUS: Umayyad Square in Damascus hummed to the throngs of people brandishing “revolution” flags as Syria saw in the new year with “hope” following 13 years of civil war.
Gunshots rang out from Mount Qasioun overlooking the capital where hundreds of people gazed up at fireworks, an AFP reporter at the square saw.
It was the first new year’s celebration without an Assad in power for more than 50 years after the fall of Bashar Assad in December.
“Long live Syria, Assad has fallen,” shouted some children.
Despite the revelry, soldiers patrolled the streets of Damascus, less than a month after Assad’s rapid demise.
The green, white and black “revolution” flag with its three red stars flies all over the capital.
Such a sight — the symbol of the Syrian people’s uprising against the Assad dynasty’s iron-fisted rule — was unthinkable a month ago.
The revolutionary song “Lift your head, you are a free Syrian” by Syrian singer Assala Nasri rang out loud on Umayyad Square.
“Every year, we aged suddenly by 10 years,” taxi driver Qassem Al-Qassem, 34, told AFP in reference to the tough living conditions in a country whose economy collapsed under Assad.
“But with the fall of regime, all our fears have dissipated,” he added.
“Now I have a lot of hope. But all we want now is peace.”
More than half a million people died in the 13-year civil war as the country split into different regions controlled by various warring parties.
Many families are still waiting for news of loved ones who disappeared under Assad’s rule, during which time tens of thousands of prisoners disappeared.
“I hope that Syria in 2025 will be non-denominational, pluralist, for everyone, without exception,” said Havan Mohammad, a Kurdish student from the northeast studying pharmacy in the capital.
Woman burned to death in New York subway is identified as 57-year-old from New Jersey
- The woman, Debrina Kawam, had worked at the pharmaceutical giant Merck in from 2000 until 2002, but her life at some point took a rocky turn
- Sebastian Zapeta , 33, has been indicted on murder and arson charges in her Dec. 22 death
NEW YORK: The woman who died after being set on fire in a New York subway train this month was a 57-year-old from New Jersey, police announced Tuesday.
The woman, Debrina Kawam, had worked at the pharmaceutical giant Merck in from 2000 until 2002, but her life at some point took a rocky turn. She had briefly been in a New York homeless shelter after moving to the city recently, the Department of Social Services said. It did not say when.
Police had an address for Kawam in Toms River, a community on the Jersey Shore, and authorities said they notified her family about her Dec. 22 death. The Associated Press left messages Tuesday for possible relatives.
“Hearts go out to the family — a horrific incident to have to live through,” Mayor Eric Adams said at an unrelated news briefing.
It came hours before another harrowing act of violence on the nation’s busiest subway system.
A 45-year-old man was pushed onto the tracks ahead of an oncoming train at a station under Manhattan’s Chelsea neighborhood about 1:30 p.m., police said. The man was taken to a hospital in critical condition, and police said they had a person of interest in custody.
Personal safety in the subways is generally comparable to safety in the city as a whole. But life-threatening crimes such as stabbings and shoves spread alarm about the trains that have carried more than 1 billion riders over the course of this year.
Police figures show major crimes on subways were down this year through November, compared with the same period last year, but killings rose from five to nine.
In Kawam’s case, prosecutors have said she was asleep on a subway train that was stopped at a station in Brooklyn’s Coney Island when her clothes were set ablaze by a stranger, Sebastian Zapeta.
Zapeta, 33, allegedly fanned the flames with a shirt, engulfing her in the blaze, before sitting on a platform bench and watching as she burned.
Identifying the victim proved to be a challenge, and authorities said Friday that they were still using forensics and video surveillance to trace her.
Zapeta has been indicted on murder and arson charges. He has not entered a plea, and his lawyer has declined to comment outside court.
Federal immigration officials say Zapeta is from Guatemala and entered the US illegally. An address for him given by police matches a shelter that provides housing and substance abuse support.
Zapeta was arrested after police circulated images of a suspect and received a tip from a group of high school students.
Prosecutors have said Zapeta subsequently told police that he was the man in surveillance photos and videos of the fire being ignited, but that he drinks a lot of liquor and does not know what happened.
He is currently jailed, and his next court date is Jan. 7.
While it is not clear why Kawam was asleep in a subway car, New York’s subways often unofficially function as a refuge for homeless people. In theory, legal settlements give homeless individuals a broad right to shelter in the city, but some turn to the trains if they are unable to stay in shelters or fearful about safety in them.
On the morning of the fire, temperatures were around 20 degrees Fahrenheit (minus 6.5 Celsius) and had been below freezing for 24 hours, according to data from nearby Brooklyn weather stations.
“No matter where she lived, that should not have happened,” the mayor said.
The social services department said it would amplify its efforts to reach and help homeless people on streets and subways and encourage them to use shelters.
Ivory Coast asks French troops to leave, the latest African country to do so
- France has suffered similar setbacks in several West African countries in recent years, including Chad, Niger and Burkina Faso
ABIDJAN, Ivory Coast: Ivory Coast announced on Tuesday that French troops will leave the country after a decadeslong military presence, the latest African nation to downscale military ties with its former colonial power.
Ivorian President Alassane Ouattara said the pullout would begin in January 2025. France has had up to 600 troops in Ivory Coast.
“We have decided on the concerted and organized withdrawal of French forces in Ivory Coast,” he said, adding that the military infantry battalion of Port Bouét that is run by the French army will be handed over to Ivorian troops.
Outtara’s announcement follows that of other leaders across West Africa, where France’s militaries are being asked to leave. Analysts have described the requests for French troops to leave Africa as part of the wider structural transformation in the region’s engagement with Paris.
France has suffered similar setbacks in several West African countries in recent years, including Chad, Niger and Burkina Faso, where French troops that have been on the ground for many years have been kicked out.
Several West African nations — including coup-hit Mali, Burkina Faso and Niger — have recently asked the French to leave. Among them are also most recently Senegal, and Chad, considered France’s most stable and loyal partner in Africa.
The downscaling of military ties comes as France has been making efforts to revive its waning political and military influence on the continent by devising a new military strategy that would sharply reduce its permanent troop presence in Africa.
France has now been kicked out of more than 70 percent of African countries where it had a troop presence since ending its colonial rule. The French remain only in Djibouti, with 1,500 soldiers, and Gabon, with 350 troops.
Analysts have described the developments as part of the wider structural transformation in the region’s engagement with Paris amid growing local sentiments against France, especially in coup-hit countries.
After expelling French troops, military leaders of Niger, Mali and Burkina Faso have moved closer to Russia, which has mercenaries deployed across the Sahel who have been accused of abuses against civilians.
However, the security situation has worsened in those countries, with increasing numbers of extremist attacks and civilian deaths from both armed groups and government forces.
