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Good evening everyone. Despite a late session surge, the Shanghai Composite finished the session down 1.11% while Shenzhen and the ChiNext slipped 2.7% and 5.5% respectively. Hong Kong’s Hang Seng Index meanwhile closed 0.85% lower, while over in Japan, the Nikkei Average slipped almost 0.2%. The only light in the darkness seemed to be the CSI 300, which ended the day up 0.33%. Here’s what else you need to know:
Chinese distillers add new meaning to hard liquor. In the latest case of food contamination over in the mainland, 51 Chinese distillers were accused of spiking their Baiju with something a little stronger – Sildenafil – or powdered Viagra to you and me. Financial Times (paywall)
Chinese insurance companies could end up holding the bag. After repeated “national service” requests to prop up the region’s ailing stock market, Chinese insurers are currently feeling the heat as concerns over their equity exposures send their share prices tumbling. SCMP (paywall)
Hong Kong helps HSBC blast through estimates. A surge in HSBC Hong Kong’s revenues helped the bank’s first-half profits soar to $13.6 billion – more than a billion dollars higher than analyst’s estimates. Brazil’s Banco Bradesco also agreed to buy HSBC’s unprofitable Brazilian arm for $5.2 billion, a double yay! for the firm. Reuters / Dealbook
Greek stocks tank 23%. Tons of built-up negativity sent the Athen Stock Exchange down 11% right out of the bat while the country’s largest lenders – Piraeus Bank, National Bank, Alpha Bank, and Eurobank – all dropped by 30%. Wow. BBC News
Commodity currencies are getting whacked. After retracing some of their declines against the dollar Friday, commodity currencies got knocked down again with the ruble tanking 1.2%, the loonie slipping 0.3%, the kiwi falling 0.2%, while the Malaysian ringgit dropped 0.7%. Financial Times (paywall)
Man spends HK$400,000 to pop the question. In one of the most elaborate proposals ever, a Hong Kong man lead his would-be fiancé to one of the top-floor suites of the Ritz Carlton at precisely the right time a helicopter flew by with a banner saying: “I love you! Stephanie BB, will you marry me?” Oh, and he did all of this in front of a HK$15,000 video crew. Am I the only one who wishes that she said no at first just so we can have a cool new viral video? SCMP (paywall)
Citic Resources posts huge loss. Falling oil prices and China’s current downturn hit Citic Resources pretty hard the past six months, eventually forcing the firm to report over $100 million in losses for the half of the year. Revenues meanwhile fell 86% from the past year, while operating losses came in over $58 million. SCMP (paywall)
Japanese manufacturing climbs to five-month high. While everyone continues to be worried about the nation’s consumer spending numbers, Japan’s latest PMI reading suggests that economy may finally be recovering. The final Nikkei Japan manufacturing purchasing managers index (PMI) came in at 51.2 for July, below the preliminary reading of 51.4 but better than the final 50.1 reading in June. Reuters
Caixin China PMI hits two-year low. Manufacturing data from the mainland continues to disappoint as the Caixin China manufacturing purchasing managers index (PMI) came in at 47.8 in July, down from 49.4 in June and well below the 50+ reading needed to signal expansion. Any reading below the 50 mark means contraction. WSJ
China Zhongwang Holdings suspends shares after short seller memo. Dupre Analytics, a seemingly China-focused research group and short seller, has accused China Zhongwang Holdings’ chairman Liu Zhongtian and his family for “systematically defrauded investors, [fabricated] at least 62.5 per cent of revenue since 2011 and likely skimming billions of [capital expenditure] from the delayed [production facility] in Tianjin.” SCMP (paywall)
Car sales turn ugly in the world’s largest auto market. After playing second fiddle to the stock market during the first half of the year, car sales now have a bumpy road ahead of them thanks to the equity rout. Reuters
Is a Hong Kong mogul signaling a top to the Chinese real estate market? Billionaire Li Ka-shing has put up for sale the Century Link and Century Link Tower for an estimated $2.6 billion, according to unnamed sources. The shopping mall and twin office towers are in Beijing. In the past two years, Li has sold five office buildings and shopping malls. Wall Street Journal (paywall)
Citadel suspended from trading in China. The China Regulatory Securities Commission is hunting down “malicious” short-sellers and has fingered 24 accounts, including a Citadel unit that trades futures on the Shenzen exchange. A Chinese-backed newspaper further insinuated that former Federal Reserve Chairman Ben Bernanke, an advisor to the high frequency trading firm, somehow knows about the shorts. Nikkei Asian Review, Twitter
Mark Karpeles, head of bankrupt Bitcoin exchange, arrested in Japan. Half a billion dollars have disappeared from Mt. Gox. New York Times (paywall)
Trump the top dog in crowded Republican primary; Vice President Biden mulls a bid for Democratic nomination. The new WSJ/NBC poll gives Donald Trump an edge, with 19% saying they support the colorful real estate mogul, followed by Wisconsin Governor Scott Walker (16%), and Jeb Bush (14%). Meanwhile, Joe Biden has reportedly quietly discussing whether he should run for the democratic nomination. The NY Times reports that Biden’s son Beau, who recently passed away from brain cancer, urged his father to go for it. Wall Street Journal (paywall) New York Times (paywall)
Photo: Jundy Tiu