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 then expanded its decline and once fell 520 points. The HSI fell 459 points or 2.4% in mid- day to 18,616; the HSCEI fell 184 points or 2.8% to 6,356; The HSTECH fell 131 points, or 3.1%, to 4,141. The market's mid-day turnover totaled HK$57.7bn. Chinese property stocks dropped collectively. Country Garden (2007) suspended trading in 11 domestic bonds. Its share price fell 16.3% in mid- day. Country Garden Services (6098)’s share price, related company of Country Garden Group, fell 9.9%. Sino-Ocean (3377) defaulted on unpaid coupons of US$20.94mn, and its stock price fell 3.8%. Domestic insurance stocks Ping An (2318) and China Life (2628) fell 4.7% and 4.3%.

Source: KGI Asia Investment Strategy

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