China's property market is seeing strong sales and rising rents, indicating a continuing demand for housing that pessimists are missing, according to veteran economist Hong Hao.
Asian stocks, particularly Chinese markets, may find some relief after Wall Street's resilience in the face of rising bond yields, though economic data from China remains underwhelming and foreign investors continue to sell Chinese stocks.
Hong Kong's stock market has benefited from China's rapid growth, with over 1,400 Chinese companies raising $1.05 trillion in the past 30 years.
Hong Kong stocks rebounded as traders considered the recent market slump to be excessive, with Chinese tech leaders such as Alibaba, AIA, and NetEase leading the way.
China's economic slowdown, marked by falling consumer prices, a deepening real estate crisis, and a slump in exports, has alarmed international leaders and investors, causing Hong Kong's Hang Seng Index to fall into a bear market and prompting major investment banks to downgrade their growth forecasts for China below 5%.
International investors are selling off Chinese stocks at a rapid rate, with $10.7 billion worth of holdings sold in 13 consecutive days, the longest streak since 2016, due to concerns over slowing growth and the potential impact of the country's property sector on the financial system.
Chinese property giant Evergrande's shares plummeted over 80% in Hong Kong after trading resumed following a 17-month suspension, reflecting the challenges faced by China's real estate sector amid a post-pandemic slump and a nationwide property crisis.
Most Asian stocks rose on Monday, led by Chinese shares, as China implemented measures to support its stock markets and investors looked ahead to key economic indicators from China and the US.
Global shares rise as investors are relieved by the Federal Reserve's cautious approach to interest rates, with Japan's Nikkei 225 and Hong Kong's Hang Seng among the indices posting gains.
Shares of Chinese e-commerce giants Alibaba and JD.com surged after the Chinese government announced measures to boost the country's capital markets, including halving the stamp duty on securities transactions.
Chinese stocks rebounded briefly after Beijing implemented measures to halt the slide, but foreign investors used the opportunity to unload $1.1 billion of mainland Chinese equities, reflecting ongoing nervousness about holding capital in China.
Chinese stocks initially surged on Monday after the government implemented measures to boost investor confidence, but most of the gains were lost by the end of the session due to concerns about the country's economic slowdown and the foreign outflow of funds.
China's government implemented various measures to boost its stock market, including a cut in stamp duty and restrictions on selling shares, but the impact has been limited as the CDI 300 index closed up just 1.2% after initially opening higher, and troubled property developer Evergrande experienced an 87% drop in stock value; foreign investors are pulling their money out of China and want to see more significant policy measures from the government.
Hong Kong stocks rise on speculations of fresh capital market measures and expectations of banks cutting mortgage rates, while Chinese developers and Xiaomi contribute to the market gains.
Chinese stocks, including Alibaba, JD.com, and Baidu, rebounded as investors bought the dip, while property manager Country Garden faced liquidity pressures.
Asia-Pacific markets rise as investors anticipate China's August factory activity data, with the country's manufacturing sector expected to contract for the fifth consecutive month, while US stocks gain due to positive economic data and revised GDP growth figures.
Asian shares edged higher as China implemented measures to support its housing sector and stabilize the yuan, with investors cautious pending U.S. jobs data that could influence the Federal Reserve's decision on interest rates.
Chinese stocks surged as the government implemented additional measures to support the property sector, signaling a determination to boost the economy by addressing issues in the struggling housing market.
Global stocks rise as a Chinese rebound, prompted by eased mortgage rules, boosts the country's struggling property sector. Goldman Sachs predicts more stimulus to come.
Asian stocks, particularly China shares, have continued to rally amid speculation that Beijing's small policy measures could result in significant stimulus, with expectations of a relaxation of property buyer restrictions; Japanese shares have also seen positive performance after data revealed record recurring profits in Q2, resulting in the Topix reaching a 33-year high; U.S. futures imply a high probability of no interest rate hike this month and suggest the tightening cycle may be over, while Treasuries sold off on Friday, leading to concerns over the budget deficit and potential difficulties in absorbing new debt.
Shares of Chinese property developer Evergrande surged as much as 82% on Wednesday, leading gains on the Hang Seng Index, following reports of successful bond coupon payments by Country Garden, signaling a potential recovery in the country's property sector.
Wall Street stocks surged on Monday as positive Chinese data and optimistic remarks from Treasury Secretary Janet Yellen boosted confidence in the global economy.
Chinese property stocks and Japanese government bonds set the tone for global markets as the Hang Seng property index dropped to a fresh September low before rebounding on news that Country Garden won creditor support to delay onshore bond payments, while the Bank of Japan's comments about potential stimulus exit in 2023 pushed the local bond market, and the week ahead is marked by important policy meetings by the Bank of England, the Federal Reserve, and the ECB.
Asian markets are expected to be on the defensive due to sagging stocks and rising oil prices, as investors await U.S. inflation figures that will impact the Fed's rate decision; China's real estate sector is seen as the most likely source of a global systemic credit event.
Chinese economic data showing strength in consumer spending and manufacturing activity boosted Asian markets, with Hong Kong's Hang Seng Index rising 0.8% and Tokyo's Nikkei 225 surging 1.1%, despite concerns about a slowdown in China's economy.
Asian shares sink on worries about the Chinese property sector and Japanese investors sell chip stocks, while benchmark U.S. Treasury yields and the dollar remain high ahead of key central bank decisions.
