Pressure from Beijing, looming vacancy tax will force Hong Kong’s developers into faster and cheaper project launches, say analysts

Hong Kong’s developers are coming under mounting pressure to slash their prices and offload new projects as quickly as possible, according to analysts.The pressure is coming from two sources: a looming tax on unsold flats, and a series of Chinese state-media commentaries last week urging the Hong Kong government to boost housing by seizing land being hoarded by developers with “vested interests”.Downbeat sentiment stemming from the social unrest gripping the city and the US-China trade war has… Source link

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China 

China’s central bank to stick to its guns by lowering interest rates despite soaring pork price, analysts say

China’s central bank will stick to its guns to lower interest rates and boost bank liquidity to encourage more lending and support the economy despite skyrocketing pork prices across the country, analysts said.While the surge in pork prices – up 46.7 per cent in August compared to a year earlier – has fanned public discontent and jumped to the top of Beijing’s policy agenda, overall Chinese inflation remains under control, with the August headline consumer price index remaining stable at 2.8… Source link

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Global 

Capital outflows amid Hong Kong’s protests could have caused record drop in forex reserves, analysts say

Money being taken out Hong Kong amid the anti-governments protests, as well as China’s cooling economy and the mainland’s trade war with the United States, could have been the cause for the city’s foreign exchange reserves posting their biggest monthly drop on record in August, analysts said.Foreign exchange reserves fell from a record high of US$448.4 billion in July to US$432.8 billion last month, with the US$15.6 billion decline the biggest since the data was first published in 1988, the… Source link

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Even protesters use the services of ‘protest-resistant’ utilities stocks, making them a defensive investment option, analysts say

Fewer mainland tourists may come to Hong Kong to buy Chow Tai Fook’s 24-carat lucky piggy bracelets or Gucci handbags. Locals may stay home from dim sum restaurants, swanky malls and flat sales. But one thing is for sure: nearly all of us in this magnificent city reeling from months of demonstrations will shower, scan the internet and use electricity – including protesters.That explains why analysts are talking about Hong Kong-listed utilities as “protest-resistant” stocks.Some stocks have been… Source link

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China 

China tapping national pork reserves will not satisfy shortage of culturally symbolic meat, analysts warn

China has begun to tap its national pork reserves, a sign of Beijing’s urgency to curb widespread discontent over the sharp spike in pork prices, but analysts warn that stocks are nowhere near big enough to keep the popular meat on dinner tables across the country.China is in the grip of an African swine fever epidemic that could wipe out half its pig population by the end of the year, with officials also scrambling to ratchet up pork imports to help fill the gap.The government’s tapping of the… Source link

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China 

China needs to rev up stimulus measures to repair broken down car sales, analysts say

As China’s car sales head towards an expected 14th consecutive monthly decline in August, calls have been made for additional and more powerful purchase incentives after three previous measures intended to boost purchases have so far failed to halt the longest down cycle on record in the world’s largest auto market.Since July 2018, sales of passenger vehicles have fallen for 13 straight months on year-on-year basis, and while figures for August have not yet been released, preliminary data… Source link

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China 

China seeking moral high ground against Donald Trump with WTO compliant over latest US tariffs, analysts say

China’s move to file an official complaint with the World Trade Organisation over new tariffs from the United States on Chinese products is largely a symbolic attempt to gain the moral high ground by supporting the international trading system amid the ongoing trade war, analysts said.The Ministry of Commerce announced in a statement on Monday, a day after Washington imposed the first batch of new tariffs on US$300 billion of Chinese imports, that China had filed a lawsuit against the US under… Source link

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China’s dream of making the yuan a global currency hit by Hong Kong protests, depreciation, analysts say

Global payment transactions in July involving the Chinese yuan dropped to the lowest level since October 2018 as the Hong Kong protests, reduced global trade flows and its depreciation since the spring hinder offshore use, analysts said.The yuan’s share in international payments dropped to 1.81 per cent in July from 1.99 per cent in June, slipping behind the Canadian dollar as the sixth most-used international transaction currency, according to financial messaging service provider Swift.The… Source link

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Hong Kong, China investors hold fire over Vancouver commercial property, but prices unlikely to crash, analysts say

Foreign investors, including those from Hong Kong and mainland Chinese, largely stayed out of commercial real estate in Vancouver, Canada’s second-largest investment market, in the first half of 2019 amid sinking home prices in the city. “Market participants seemed to be waiting for the next shoe to drop. With single-family homes and commercial properties competing for land, the thinking is that the decline in residential prices will bring down land values, and in turn bring down commercial… Source link

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China’s central bank now has ‘bigger say’ over lending rates, but analysts question level of impact

China’s central bank has gained a “bigger say” in deciding the country’s lending rates after taking a subtle but significant step towards monetary policy independence, but analysts have questioned the level of impact the mechanism change will have.Under direction from the State Council executive meeting on Friday, the People’s Bank of China announced on Saturday that it requires banks to benchmark their loan rates against the medium-term lending facility (MLF) instead of the official benchmark… Source link

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