Today was also less-curate-like than yesterday with equities rising smartly (in excess of 1%) along with a 59% surge in August’s auto sales and the Yuan behaving itself (+0.18%). There was also positive (‘getting its own back’) news from China Vanke with Yuan 10 billion of apartment sales in August; plus in Shanghai, new home sales jumped 70%. The sole niggle was Deutsche Bank which said any hope that the Government will relax existing control measures on property had “vanished”; and they could well be strengthened (echoing yesterday’s sentiment from the CBRC).
Finally, I leave you with a statistic from John Lee, author of ‘Will China Fail?’ and a visiting fellow at the Hudson Institute in Washington DC. He says that China’s domestic consumption as a proportion of GDP, at just over 30%, is “the lowest of any major country in modern economic history”. Clearly this presents a wonderful opportunity but it is not a risk free one.
Shanghai Composite:
Today: +1.25% at 2,655.78 at close
This week: +1.7%
YTD: -19.0%
Hang Seng:
Today: +1.19% at 20,868.92 at close
This week: +1.3%
YTD: -4.6%
Oil futures: $73.82
Gold futures: $1250.30
Euro/$ spot: 1.2790
Headlines
- Yuan rises most (+0.18%) in two weeks on reference rate reflecting US dollar declines
- August’s auto sales climb 59%
- China may toughen property curbs, says Deutsche Bank; but China Vanke does well
- Shanghai's new home sales jump 70% in August as prices rebounded too
- China Railway Group aims to boost 2010 property sales 80%
- PBOC sells three month bills at unchanged 1.5704% yield
- Ping An to merge banking unit with Shenzhen Development Bank; and moves to majority control
- EU Chamber of Commerce speaks about “frustration” with pace and scope of Chinese deregulation
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