Market Roundup

Market Roundup

Zhongrong International Trust suspended the redemption of more than Rmb350bn of trust products, which made the market worry that the debt default problem of Chinese developers may spread outward. Hong Kong stocks market fell in the morning. The HSI opened 377 points lower and fell 459 points or 2.4% in the mid-day. The decline in the market narrowed afternoon. The HSI closed at 18,773, down 301 points or 1.6%. The HSTECH closed at 4,208, down 64 points or 1.5%. The HSCEI fell 116 points, or 1.8%, to 6,423. Market turnover was HK$104.15bn. Chinese property stocks dropped collectively. Country Garden (2007) suspended trading in 11 domestic bonds. Its share price fell 18.4% today. Similar property management stock Country Garden Services (6098) fell 9.7%. Sino-Ocean (3377) defaulted on unpaid coupons of US$20.94mn, and its stock price fell 5.1%. Domestic insurance stocks Ping An (2318) and China Life (2628) fell 3.1% and 2.8%.

Source: KGI Asia Investment Strategy

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