China Last Night
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Key News
Asian equities started the week on a strong note except for Japan, which was off for Marine Day, a national holiday meant to give thanks for the ocean’s bounty. Mainland China and Hong Kong had a strong day driven by policy comments addressing unfinished apartment owners not paying their mortgages and clean energy needs as China experiences a severe heat wave.
Mortgages that have recently gone unpaid represent a tiny percentage of total mortgages and are centered around unfinished projects. Nonetheless, the headlines have clearly driven a policy pivot. Buyers may be given a payment grace period. Real estate was a top performing sector in both Hong Kong, where it gained +0.6%, and Mainland China, where it gained +3.63%.
The People’s Bank of China (PBOC), China’s central bank, injected $1.3 billion worth of liquidity…