Chery Automobile jumps 11% on Hong Kong debut, raising US$1.2bn amid global expansion

South Africa:

South African markets were closed for Heritage Day. Looking back to Tuesday, the JSE All Share closed up 0.69%, ending at 106,693.2 points, while the Top 40 also gained 0.78%, finishing at 99,474.9 points. Key developments included a renewed SA-China investment push targeting mining, energy, and infrastructure. President Ramaphosa confirmed ongoing talks with the U.S. to reduce 30% tariffs imposed under the Trump administration, following failed attempts to secure a trade deal. Meanwhile, July’s business cycle indicator rose 0.9% m/m, though the rand remained steady. Chinese SOE Baiyin Nonferrous will invest R4bn in Gauteng gold operations via Gold One. Investors await PPI and the SARB’s Q2 economic trends report later this week.

Europe:

European equities slipped as strength in resources and energy (+1.8% and +1.5%) was offset by weakness in healthcare and luxury. The STOXX 600 closed 0.2% lower, with France’s CAC 40 falling 0.6%. German home prices rose 3.2% in Q2, showing tentative stability post-recession. In the UK, auto production slumped 18.2% YoY in August to 38,693 units. Disruption from a major cyberattack at Jaguar Land Rover raised concerns over extended supply chain issues and economic impact. Investors remain cautious amid mixed economic signals and shifting global demand dynamics.

United States:

U.S. equities fell for a second session as investors booked profits near record highs. Fed Chair Powell flagged stretched valuations and signalled caution amid a softening labour market. Fresh U.S. home sales rose 20.5% in August, surprising to the upside. Lithium Americas surged nearly 100% after news that the Trump administration may take a 10% equity stake and support a $2.26bn loan, linked to GM. Investors now await key inflation data via the Fed's preferred PCE index. Market focus remains on the Fed’s policy balancing act between inflation and growth.

Asia-Pacific:

Asian equities paused on Thursday amid month-end positioning. South Korea’s central bank stressed tighter policy coordination to tackle financial risks, especially household debt and property prices. Shares in Chery Automobile surged 11.2% on its $1.2bn Hong Kong IPO debut, highlighting investor interest in China’s expanding EV sector. Meanwhile, Xiaomi aims to launch its EVs in Europe by 2027, with showroom plans underway. Regional sentiment remains constructive but cautious, as macro headwinds persist. Investors are monitoring central bank policy signals and corporate expansion strategies across Asia’s auto and tech sectors.

Currencies:

The U.S. dollar held gains on Thursday, with the dollar index near a three-week high at 97.813, reflecting cautious Fed commentary and anticipation of key inflation data. The Fed's measured tone on easing supported the greenback ahead of Friday's PCE report and Thursday’s Q2 GDP revision. Sterling weakened against the dollar following Fed Chair Powell’s remarks, reinforcing market expectations of fewer rate cuts ahead. Currency markets remain sensitive to evolving U.S. policy signals, macro data, and geopolitical developments, with the looming risk of a U.S. government shutdown adding uncertainty.

Commodities:

Gold prices steadied, supported by a softer U.S. dollar, as markets awaited U.S. inflation data to refine Fed rate expectations. Oil prices eased in Asia after hitting seven-week highs, following strong gains from a surprise drop in U.S. inventories and geopolitical risks in Russia and Ukraine. A deal to resume oil exports from Iraqi Kurdistan further eased supply concerns. New Zealand reopened applications for oil and gas exploration, reversing its 2018 ban. Haitong Securities noted recent oil resilience stems from balanced fundamentals, despite limited downward pressure from supply-demand dynamics.

 Remgro Limited (REM) +1.76%

For the year ended 30 June 2025, Remgro (REM) reported a 38.4% increase in headline earnings per share to R14.09, driven by strong operational performances across over 80% of its portfolio. Headline earnings rose 38.6% to R7.8bn, with notable contributions from Mediclinic, OUTsurance, Rainbow Chicken, and Heineken Beverages. Ordinary dividends increased by 30.3% to 344 cents per share, with an additional 200 cents declared as a special dividend. Intrinsic net asset value per share rose 16.5% to R292.34, while the share price remained at a 45.9% discount to NAV.

Gemfields Group Limited (GML) +5.52%

Gemfields has issued a trading statement for H1 2025, guiding for a net loss after tax of USD 24.6m (ZAR 435.8m), versus a USD 13.7m profit in H1 2024. Loss per share is expected at USDc 1.7 (ZARc 30.12), compared to earnings of USDc 0.6 (ZARc 11.8) in the prior period. Lower auction revenues from Montepuez and Kagem, impacted by production disruptions and weaker premium carat availability, weighed heavily on results. Liquidity improved post-period with a USD 30m rights issue and the USD 50m disposal of Fabergé. Interim results will be released on 26 September 2025.

Rex Trueform Group Limited (RTO) 0.00%

Rex Trueform has issued a trading statement indicating a material improvement in financial performance for the year ended 30 June 2025. Earnings per share are expected to rise to 127.0 cents (FY24: loss of 3.9 cents), while headline earnings per share are projected at 129.0 cents, up over 100% from 37.5 cents in the prior year. The sharp turnaround reflects a significantly improved operational and financial position. Final audited results are expected to be released on or about 25 September 2025. This update has not been reviewed by the Company’s auditors.

African and Overseas Enterprises Limited (AON) 0.00%

African and Overseas Enterprises expects a significant earnings rebound for the year ended 30 June 2025. Earnings per share are forecast at 106.4 cents, compared to a loss of 15.8 cents in FY24. Headline earnings per share are projected to rise over 100% to 110.0 cents, up from 60.1 cents in the prior year. This reflects a strong turnaround in the Company’s financial performance. Final audited results are expected on or about 25 September 2025. The financial information has not been reviewed or reported on by the Company’s auditors.

Fonterra Co-operative Group Limited (FCG) 0.00%

Fonterra shares reached a seven-year high following robust FY results and a record full-year dividend of 57 NZ cents. Operating profit grew across divisions: Ingredients rose 17.4% on improved product mix; Foodservice gained 8.6% on strong volumes; and the now-sold Consumer unit saw a 16.1% rise in normalised profit. Despite this, net profit fell 4.3% to NZ$1.08bn due to tax changes linked to shareholder distributions. FY26 EPS guidance was lowered to 45–65 NZ cents, down from 71 NZ cents, reflecting margin normalisation and revised tax treatment.

Chery Automobile (9973)

Chery Automobile shares rose 11% on debut in Hong Kong after raising HK$9.1bn (US$1.2bn) via IPO, underlining strong investor interest despite the cancellation of its listing ceremony due to Typhoon Ragasa. As China’s top auto exporter, Chery is expanding aggressively in Europe, Vietnam, and the Middle East. Its Jetour sub-brand will launch in Poland this November, with the Omoda and Jaecoo marques already present in the UK. In August, Chery sold 242,736 vehicles—up 14.6% YoY—with exports surging 32.3%, positioning it as a key global player in the EV and SUV markets.

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