Today’s session in Shanghai underscores the volatility in the market that Chinese regulators have been warning investors about, especially the smaller ones who either borrowed money or sell some properties so they can bet and maybe make some money. Or lose it all. Thankfully, today’s session ended happily like a romance movie with a small gain. Another good news, the PBOC may soon allow banks to decide how much interest they can pay their depositors, though the timing remains a big question mark.
Chinese shares close higher after a wild ride. The Shanghai Composite Index took a surprising turn in the afternoon session and erased the 1.8% losses posted at the mid-day break. At some point, it lost as much as 5.3%. But the index ended up the volatile session with a 0.8% gain to close at its highest level since January 2008. Japan’s Nikkei also closed up 0.1%, while Ausralia’s S&P ASX 200 lost 1.3% on poor trade data. Reuters/The Wall Street Journal (paywall)
China may lift deposit rate ceiling soon. In a giant leap towards allowing market forces to determine the cost of money in the country, China’s central bank, the PBOC, is set to remove the cap on the amount of interest that banks can pay depositors. The rates could be freed as soon as the PBOC announces another rate cut, some analysts said. Reuters
Apple takes first bite of Japanese bonds. The U.S. firm is selling 250 billion yen ($2 billion) of local currency bonds to Japanese and international investors. Cheaper borrowing costs enticed Apple to issue its first ever debt in the country — a five-year bond with a 0.35% coupon. The Wall Street Journal (paywall)
Japanese e-commerce firm eyes $1.5 billion share sale. The planned offering will be the first in nine years for Rakuten, which will use the proceeds to pay debt. The sale will be made to both domestic and offshore investors. The Wall Street Journal (paywall)
Hong Kong retail scene is bleak. Some retailers in the former British colony have shut down stores and suspended plans to expand in the past year after a decline in the number of Chinese tourists visiting the city. Chinese tourists are now going to South Korea and Japan to shop, taking advantage of weaker currencies in the two countries. Reuters
Photo credit: Patrick McGarvey via Flickr