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Hong Kong’s index of used homes fell in June as trade war, public unrest combine to stifle property market bull run

The prices of Hong Kong’s lived-in homes dropped by 0.8 per cent in June, as the year-long US-China trade war and unprecedented levels of public unrest combined to send property buyers to the sidelines, ending a five-month bull run in the city’s real estate market.The price index of used homes fell to 393.7, according to the Rating and Valuation Department’s data. Property analysts said the decline will accelerate in the coming months.“The index will still adjust downwards in the next one to… Source link

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Global bull run could continue for as long as two years, but may be ‘noisy’ for investors, Investec Asset Management says

The bull market and the longest economic expansion globally since the second world war will continue for as long as another 18-24 months, but it could be a “noisy” one for investors, according to Investec Asset Management.John Stopford, head of multi-asset income at Investec, said investors needed to be more defensive in their approach as the market cycle was quite “long in the tooth”, but there were opportunities to take on risk.“The context we are operating in is a very uncertain one, a very… Source link

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China 

Bull run in China’s home prices continues for 50 straight months in June, but growth slows as curbs kick in

China’s new home prices rose for 50 months in a row in June, but the pace of growth slowed as a range of cooling measures initiated by the government kicked in.The average cost of a new home increased by 0.6 per cent in June, slowing from 0.71 per cent jump in May and 0.62 per cent in April, according to calculations based on National Bureau of Statistics data released on Monday morning.“The government has launched policies targeting developers one after another, which have cooled down the… Source link

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The bitcoin bull run is more than just hype this time – don’t be surprised by a US$20,000 price tag by year end

At the time of writing, bitcoin has just surpassed the US$13,000 mark. The last time we saw bitcoin reach this price was in December 2017, after which, the cryptocurrency went on to reach its all-time high of nearly US$20,000 in a matter of days. The cryptocurrency market remained bearish for all of 2018, but with the way bitcoin is charging upwards and setting new highs in 2019, it is safe to say that the crypto-winter is behind us already. In the past several years, we have witnessed a… Source link

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Property 

Two Hong Kong banks cut their valuation of used homes as city’s civic unrest threatens to knock property bull run off its footing

Two of Hong Kong’s biggest commercial banks cut their valuation of pre-owned homes in several housing estates in anticipation of declining prices, after the city was rocked for the past month by record number of street protests.HSBC and Bank of China (Hong Kong), two of the city’s three currency printing banks, cut their valuations for used homes in the New Territories and Kowloon by up to 3.6 per cent, according to data on their websites.“Valuations have dropped as a result of the political … Source link

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A shareholder’s stake sale plan stops the bull run in China’s best-performing brokerage stock CSC Financial

The bull run in CSC Financial, this year’s best performer among China’s brokerage stocks, was stopped in its tracks as a disposal plan by its fourth-biggest shareholder raised concern that the country’s financial-services companies may already be overvalued.Citic Securities, China’s largest public traded broker, said it plans to sell 427 million shares, or 5.6 per cent of CSC Financial, in the secondary market in the next six months to meet its operational needs, according to a June 25… Source link

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Has Asia’s commercial property bull market peaked? Here are three reasons to suggest it has further to run

One of the attractions of investing in real estate is that the returns on offer are invariably higher than those on benchmark government bonds. Yet, over the past decade or so, the spread, or gap, between rental yields and their fixed-income equivalents has narrowed sharply as property yields have shrunk, driving up prices. In the commercial real estate market, the average prime yield across 50 major cities tracked by property adviser CBRE has fallen from about 7 per cent in 2009 to just over 4… Source link

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Hong Kong’s property bull run takes a surprise break as Sun Hung Kai’s Park Yoho Napoli flats in Yuen Long fail to sell out

The bull run in Hong Kong’s residential property market took an unexpected break on Saturday when a weekend launch by the city’s biggest developer failed to sell out.Sun Hung Kai Properties (SHK) sold 17 of the 144 flats at the Park Yoho Napoli project on Castle Peak Road in Yuen Long as of 3:30pm, according to sales agents, adding that very few more are likely to find buyers. Prices started from HK$17,307 per square foot before discounts of up to 21 per cent.In its rush to get Napoli – the……

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Chinese equity investors, unsure of a sustainable bull run, place wagers on defensive plays

There is a paradox in China’s world-beating stock rally this year: defensive plays are turning out to be the best performers.While Chinese stocks have technically been in bull market territory this year following a 20 per cent gain in the Shanghai Composite Index, safe bets have been leading the charge so far. A gauge of consumer staples companies, from liquor distillers to dairy and food seasoning makers, has climbed 60 per cent, outperforming all other sectors.The resilience of consumer… Source link

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Hong Kong’s property market has 10 more years in its bull run as population inflow from Greater Bay gives it sustenance

Hong Kong’s property bull market has another 10 years to run, as housing supply fails to keep up with the new population pouring in from the Greater Bay Area, said the Swiss bank UBS, which correctly picked the bottom in the city’s short-lived price correction last year.Home prices will continue spiralling upwards as buyers compete to get their hands on residential property, according to the bank’s real estate research team, led by John Lam. Hong Kong’s annual housing stock is estimated at 45… Source link

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