With interest rate cuts taking effect, CWT hopes to take advantage of the favorable macro trend

HONG KONG, Nov 4, 2024 - (ACN Newswire) - In recent weeks, both the Hong Kong and A-shares markets have experienced significant volatility. Following the U.S. Federal Reserve's larger-than-expected interest rate cut on September 19, the markets saw a strong rebound. On September 27, the People's Bank of China announced its largest economic stimulus plan since 2020, which included rate cuts, counter-cyclical monetary policy adjustments, greater-than-expected funding support, the creation of new monetary policy tools to stabilize the stock market, and the injection of approximately 1 trillion yuan (approximately US$141.82 billion) of long-term liquidity into the financial markets. These comprehensive supportive policies further boosted market enthusiasm. The Hang Seng Index in Hong Kong peaked at 23,241.74, while the A-shares market gapped up after the National Day holiday, reaching a high of 3,674.40. Both markets saw significant increases in trading volumes, indicating strong market interest.

Market data shows that foreign capital inflows have been another driving force behind Hong Kong’s stock market. According to market data, since September, overseas funds have turned into net inflows for the Hong Kong stock market. From mid-September onwards, net inflows from international intermediaries reached HKD 39.6 billion, surpassing the HKD 20.5 billion in net inflows from Mainland China into Hong Kong.

Following a sharp short-term rise in Chinese assets, there has been some market correction as investor sentiment cools and profit-taking ensues. However, from a long-term perspective, this correction is necessary. Rather than a speculative bull market, a more structured and gradual rally is healthier for the market and helps investors generate sustainable returns. Over a longer time horizon, the Hong Kong stock market has been undervalued in the past, combined with the liquidity provided by the Federal Reserve's subsequent interest rate cuts and a more comprehensive market turnaround driven by multiple favorable policies. The signals indicating a bottoming out of the Chinese economy are gradually becoming clearer, and the economic fundamentals are improving step by step, suggesting that there is still significant room for growth in the Hong Kong stock market. At the same time, the growth of China's economy has led to an increased demand for commodities and logistics services. In the Hong Kong stock market, there is a company that has been continuously focused on commodities and logistics services.

CWT International Limited ("CWT INT'L", 0521.HK, the "Company" together with its subsidiaries the “Group”) is a public limited company incorporated in Hong Kong and its shares are listed on the Main Board of the Stock Exchange of Hong Kong Limited. The controlling shareholder of the Group is HNA Trust Management Co., Ltd, and the resource endowment of shareholders is a major competitive advantage of the Group. In the first half of 2024, CWT had revenue of 20.276 billion HKD, an increase of 27% from previous year, and a net profit of 121 million HKD.

The Group operates its business through four major segments. The logistics services segment is engaged in the provision of services including warehousing, transportation, freight forwarding, and supply chain management. The commodity marketing segment is engaged in physical trading and supply chain management of metals and minerals, mainly non-ferrous base metals such as copper, aluminum, and zinc, as well as energy products. The financial services segment is engaged in the provision of financial brokerage services, and asset management services. The engineering services segment provides engineering maintenance for facilities, vehicles and equipment fleet, and design-and-build solutions for logistics properties. The Group's two major businesses segments: logistics services and commodity marketing, constitute the Group's main source of revenue and profit. The Group continues to promote synergy among all segments, to optimize operating processes and improve supply chain efficiency.

CWT originates in Singapore and remains as one of the largest warehousing and logistics service providers in Singapore. The Group continues to explore business opportunities in Greater China and Southeast Asia countries through many routes, such as establishing strategic cooperation and joint venture with local business partners. Since the initiation of the strategic cooperation with Hainan Yangpu Holding Investment in April 2024, the Group has facilitated a number of visiting delegations and exchange activities among the Group, business and industrial experts from Singapore, and local organizations in Hainan, in order to evaluate potential investment and business development opportunities in Hainan Free Trade Port. Meanwhile, on the occasion of the 50th anniversary of diplomatic relations between China and Malaysia, in May 2024, the Group signed a memorandum of understanding with a wholly-owned subsidiary of the global commodities warehousing company Access World Group, in order to extend further collaboration in the area of commodity marketing and logistics.

As the Group’s footprint in Greater China and Southeast Asia continues to deepen, its relentless focus is to learn from its experience and copy the success in Singapore and other global regions, to contribute to the economic growth and sustainable development in the regions that it operates, and to create more value for the Shareholders. Looking forward, in addition to operating the business with caution, the Group will promote deeper internal synergy, continue to expand its global commercial network, and seize further growth opportunities in Greater China and other regions to maximize the shareholders’ interests and earn a brighter future.