Shares of Chinese property developers Evergrande soared as much as 82% on Wednesday
Other stocks like Country Garden Holdings and Logan Group also surged, gaining as much as 26% and 28% respectively. The gains come after Country Garden reportedly managed to pay $22.5 million in bond coupon payments on Tuesday, narrowing avoiding default. Let's keep in mind though that the sector is far out of the wood. According to Bloomberg, 34 out of the top 50 private real estate developers in China are suffering delinquencies. The remaining 16 developers face a combined $1.5 billion of bond payments this month. In January 2024, these remaining 16 Chinese developers will face a massive $3.0 billion in bond payments. Source: The Kobeisi Letter, CNBC
6 Potential Problems for China’s Economy
Source: Barchart
China Northbound has seen sharp outflows this month, while inflows in India remain resilient ($16.4bn)
(HolgerZ via GS)
India's driest August in more than 100 years may force the country to impose additional export restrictions!
Source: Barchart, Bloomberg
China's holdings of US Treasuries just reached its lowest level in 14 years
Now down almost $481B from peak levels. Source: Crescat Capital, Bloomberg
China Uses Another Tool to Aid Yuan in String of Market Support – Bloomberg
China moved to support the yuan by increasing the supply of foreign currency in its local market, part of a multi-pronged effort by Beijing to restore confidence amid sluggish growth. Financial institutions will need to hold just 4% of their foreign-exchange deposits in reserve starting Sept. 15, the People’s Bank of China said Friday, compared to the current level of 6%. The greater availability of overseas currency relative to the yuan effectively boosts the allure of the latter. The so-called FX RRR cut came on the heels of Thursday’s reduction in down payments for mortgages to help the country’s under-pressure residential property market and after policymakers lowered stamp duty for stock trading over the weekend. The combination of supportive measures is a sign that Beijing is growing uncomfortable with increasing pessimism in its financial markets.
The US and China are the ones investing massively in innovation and the future
Europe is lagging and prefer first to debate about regulating AI. Thsi could have serious consequences in terms of competitivity, productivity and economic growth. Source: Standard Chartered, Michael A.Arouet
There is a new penny stock...
After a 17-month trading hiatus, Evergrande trading resumed only to quickly become a penny stock Source: Barchart, Bloomberg
