The real estate sector in China is experiencing a slight upswing on the Hong Kong stock exchange following measures taken by the authorities.
Photo: PEDRO PARDO / AFP / NTBPublished: Published:
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There is a broad rise in the Asian markets on Monday morning. This is what it looks like for some of the leading stock exchanges in Asia and the Pacific region at 06:00:
The Shanghai Composite is up 1.12 percentHong Seng in Hong Kong climbs 2.55 percentThe Nikkei 225 index in Tokyo is up 0.55 percentKospi in Seoul rises 0.36 percentFTSE Straits Times in Singapore rises 0.17ASX 200 in Sydney is up 0.45 percent
Property jump
The Chinese real estate sector has helped to drag down the country’s economy. The authorities have taken several measures to stimulate the sector, and the stock markets are responding positively.
Bloomberg’s indicator for Chinese property shares rises around eight percent in the morning hours. The Hang Seng Mainland Property Index, which consists of Chinese property shares, is up 8.89 percent at the same time
The authorities have relaxed regulations that make the property market more attractive. 1,800 homes were sold in China on Saturday, writes Bloomberg, which refers to local media. In comparison, 3,100 homes were sold in the whole of August in total.
Among the property shares that are doing well on Monday morning, we find Country Garden, which has fallen 62 per cent since the turn of the year. In the morning hours, the share is up more than 13 percent on the stock exchange in Hong Kong. Bloomberg writes that the company should have succeeded in paying an interest payment linked to a Malaysian debt paper.
The company recently missed two interest payments on bond loans denominated in dollars, which totaled 22.5 million, according to the news agency Reuters.
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Bloomberg writes moreover, that Country Garden only has two days to pay a bond linked to the dollar.
Several Chinese real estate stocks rose on Monday morning:
Evergrande is up 7.2 percentLongfor Group pants 9.44 percentChina Resources Land jumps 9.8 percent
Interest rate meeting and trade balance
Later this week there will be important data from Australia and China. On Tuesday, the Australian central bank will make an interest rate decision. Inflation in the country rose to 6.1 per cent in August, from 5.4 per cent in July.
On Thursday, China is expected to publish figures for the trade balance. Recently, inflation in the country turned to deflation. That means prices are falling. Fresh figures for Chinese inflation are due next weekend.
2023-09-04 04:14:19
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