Hong Kong’s blue chip Hang Seng stock market ended down 14.4% to 19,781.4 in 2022, marking the worst year since 2011 with only South Korea’s Kospi down more out of the major Asian stock markets. On the last day of the trading year the Hang Seng was up +0.2% and +1.0% for the week. It has been a tumultuous year for Hong Kong investments and the third straight year of losses for the index. The damage from the implosion of … Continue reading “Hong Kong Hang Seng Closes Down 14.4% in Worse Year Since 2011”
With all the noise China is making about rescuing its deflated property market the evidence of the depth Chinese developer and housing collapses were gaining momentum. It was the sixth straight month of decrease in new home prices, the steepest pace in the sequence, and the fastest fall since August 2015. China’s Average new home prices in China’s 70 major cities dropped another 1.6 percent year-on-year in October 2022. The fall follows on from a 1.5 percent decline the prior … Continue reading “Chinese New Homes Prices Fall for Sixth Straight Month in Melting Property Market”
Property developers’ funding access will remain constrained in 2022. Offshore corporate bond defaults rose 28 per cent in first three quarters of 2021 and corporate bond defaults in China are expected to continue to rise in 2022 according to Moody’s Investors Service. Highly indebted property developers and enterprises owned by regional and local governments struggle to access new funding after a multi-year borrowing spree. Over the next four quarters, about 8.7 trillion yuan of onshore corporate debt is set to … Continue reading “Chinese Property Developers Caught in Negative Credit Loop Says Moody’s”
The value of vineyards in one of the world’s best regarded wine regions, South Australia’s Riverland has tripled in the last few years as Australia continues to rapidly export wine to China. Australian wine exports to China grew by more than 50 per cent in the last financial year alone.
Australia’s major cities home prices fell for the eighth straight month in May, marking the first annual decline in 6 years. Tighter lending conditions at banks following the banking Royal commission and affordability issues say demand in Sydney and Melbourne soften.
Moody’s Investors Service issued it’s latest report on China saying the country’s faster pace of change in the economy’ structure is credit positive and derisking is progressing in some areas, with some advances in structural change; policy trade-offs are arising.