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China’s July home price cools, as escalating trade war and slowest economic growth in decades send shivers through property market

China’s frenzied housing market has cooled, as a government effort to cap prices is biting, while the impact of the year-long US-China trade war has percolated into the economy and caused the domestic output to grow at the slowest quarterly pace in three decades.The average cost of a new home rose by 0.59 per cent in July, marking the slowest increment in five months, while increases were recorded in only 61 of 70 cities being monitored. June’s growth was 0.66 per cent while prices grew 0.71… Source link

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Hong Kong stocks see longest run of declines in two decades as city is hit by transport chaos

Hong Kong stocks posted their longest declining stretch in more than two decades, as protesters paralysed the city’s transport, disrupting commuter services and forcing flight cancellations. Meanwhile, China’s yuan weakened to breach the 7 mark against the US dollar.The Hang Seng dropped 2.9 per cent to 26,151.32 for a ninth straight day of declines on Monday. The last time when such a run happened was back in March 1997, a few months before the handover of the former British colony and the… Source link

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Are China’s social ills from four decades of rapid economic growth approaching a tipping point?

China’s economic and technological growth over the past 40 years has lifted hundreds of millions of people out of poverty, but the rapid development to become the world’s second largest economy has also created new problems in society, which analysts warn may now be reaching dangerous levels.Emerging social issues from urbanisation, if they remained unresolved, could threaten the stability of society as the country aims to increase its urbanisation rate from the current 59 per cent to 70 per… Source link

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Hong Kong's rates curve is the most inverted in two decades

Expectations that liquidity will tighten in Hong Kong in the short term have helped drive the city’s interest rate swap curve into its deepest inversion since 1999.One-year interest rate swaps have climbed 19 basis points this week to 2.16 per cent, compared with 1.86 per cent for five-year contracts. The one-month interbank borrowing cost extended an advance on Thursday, jumping to the highest level since October 2008, amid seasonal demand for Hong Kong dollars. That has supported the currency… Source link

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Hang Seng Index drops by the most in five weeks as Hong Kong’s biggest protest rally in decades finds city on edge

Hong Kong stocks fell by the most in five weeks, as traders pocketed their profits from a recent run-up in prices after the city’s police fired tear gas on demonstrators protesting a controversial extradition proposal.The Hang Seng Index fell 1.7 per cent to 27,308.46, its biggest daily decline since a 2.4 per cent plunge on May 9 amid escalating tensions between the United States and China over trade.“The main issue the market is facing is still the Sino-US trade tussle. We have not seen the… Source link

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China showing signs similar to Japanese housing bubble that led to its ‘lost decades’, expert warns

China must exercise extreme caution in handling its housing sector because it is showing signs similar to those witnessed during Japan’s bubble period of the 1980s that contributed to the collapse of Japanese asset prices and its subsequent “lost decades” of weak economic growth and deflation, a Japanese financial system expert warned.The parallels between China’s current landscape and Japan’s two decades ago are readily apparent, stemming from a loose monetary policy that laid the foundation… Source link

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Hong Kong charges alleged mastermind of city’s largest financial probe in decades with conspiracy to defraud Convoy

Roy Cho Kwai-chee, the alleged mastermind in Hong Kong’s largest financial investigation in decades, has been charged with conspiracy to defraud Convoy Global Holdings by the city’s securities regulator and anti-corruption investigator.Cho allegedly conspired to defraud Convoy and its affiliates, causing more than HK$89 million (US$11.3 million) in losses. He will be brought to the Eastern Magistracy today, according to a joint notice by the Securities and Futures Commission (SFC) and the… Source link

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China has the largest number of property billionaires, as decades of economic growth fuelled urbanisation and demand for a roof over every head

China has the world’s largest community of property tycoons, as a generation of developers grew wealthy over three decades of rapid economic growth, which fuelled the aspiration to have a roof over every head.The second-largest economy had 108 dollar-denominated billionaires, out of 239 around the world, according to the 2019 Hurun Global Real Estate Rich List. The United States, with an economy that’s one and half times larger, has 26 real estate billionaires, while the UK has 17, and Hong… Source link

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China stocks rise on tax cuts, while Hong Kong shares slip as Beijing sets lowest GDP growth rate in three decades

Hong Kong stocks retreated on Tuesday morning as China set its lowest GDP growth rate in 30 years, while mainland shares rose on optimism over tax cuts.Markets tried to find their footing as traders digested a lot of news and China’s annual political summit kicked off to decide policy for the next year.Overnight, US stocks slumped over concerns about progress in ending the US-China trade war. China set an economic growth target of 6 to 6.5 per cent for 2019, down from last year’s target of … Source link

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China’s venture capital firms outperform US, European peers amid breakneck economic growth in the past two decades

Chinese venture capital funds have outperformed those in the US and Europe in the last 20 years, as the country’s breakneck economic growth has given impetus to the rapid expansion of the industry, according to analysts.Nevertheless, the sector is forecast to face major upheaval in 2019, with many smaller funds expected to collapse as winter sets in for the capital market amid a deepening economic downturn.Chinese VC funds delivered an overall return of 1.79 times in the period from 1997 to… Source link

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