The flagship China Bond 50 index posted its biggest loss since July 16 as Huawei bonds sank 2.13% following reports of a big hit to its European sales.
The company made headlines last week after reports that it had surpassed Samsung to become the biggest smartphone manufacturer in the world, boosted by China’s strong economic recovery.
However, it has fallen to fourth place in European smartphone vendor rankings after shipments of its smartphones to the region shrank 17% year-on-year, according to Canalys, a global technology market analysis firm.
Domestic rival Xiaomi has now emerged as the third largest smartphone vendor in Europe, with year-on-year growth in shipments expanding 65%. The growth was likely due to its portfolio of cheaper devices, according to Android Authority, an independent publication specialising in mobile technology.
The ATF ALLINDEX Corporates gauge dropped 0.05% on Thursday.
The China Bond 50 index dropped 0.07% on the back of the news, while the ATF ALLINDEX Corporates – of which Huawei is also a constituent – fell 0.05%
Other losses within the China Bond 50 index were seen in the bonds of China Merchants Group, (-0.31%), Agricultural Bank of China (-0.13%) and Huishang Bank (-0.17%).
China Merchants Group also weighed on the ATF ALLINDEX Enterprise, which retreated 0.03%.
Meanwhile, significant moves occurred again in the ATF ALLINDEX Financial gauge, which retreated for the fourth day this week.
Losses were seen in the bonds of Bank of Communications (-0.04), China Citic Bank (-0.07%), Agricultural Bank of China (-0.13%), China Minsheng Banking (-0.04%), Huishang Bank (-0.17%) and Chongqing Rural Commercial Bank (-0.09%). China Zheshang Bank and China Merchants Bank gained 0.34% and 0.22% respectively. These names are also constituents of the China Bond 50 index.
The ATF ALLINDEX Local Governments gauge held steady at 0.01%.
This report appeared first on Asia Times Financial.