Good morning everyone. Despite all the bullishness surrounding China’s equity market, foreign investors apparently pulled out of mainland stocks in a big way recently as northbound trading stats show nearly $12 billion worth of shares have been sold between July 6 to the 16th alone. Elsewhere, bond market volatility has fallen to its lowest level since June after Greece scored a bridge loan from its creditors, allowing it to free up some cash for its ECB payment due later today.
Here’s what else you need to know:
Chinese futures point to another high trading day. In its most recent trading, futures on the FTSE China A50 Index as well as the Hang Seng China Enterprises Index gained 0.5% and 0.1% respectively, pointing to another up day for Chinese shares. Japan meanwhile is closed for a holiday. Bloomberg
Chinese banks use Beijing to prop up share prices. Amid the downturn in the region’s equity market, several Chinese banks are apparently propping up their share prices thanks to leverage given to them by Beijing, and are actively shadow lending to companies in order to receive more. SCMP (paywall)
Nobody seems to like gold anymore. As the world prepares for a coming Fed rate hike, overall bullishness on gold has fallen to a record low. China and Greece meanwhile have brought to question the metal’s status as a safe haven as mayhem within the regions fail to prop up prices. Bloomberg
New Huawei ad sparks debate within the company. Huawei’s new ad, which features a ballerina showcasing her bruised, bandanged feet, has apparently sparked turmoil within the company as employees view the image as a representative of the company’s culture. WSJ (paywall)
Photo credit: Suvcon via Flickr