Is China’s one-and-a-half-year bull run running out of fuel?
Investors think so, as they rushed out of equities causing share prices to post their biggest single-day loss in five moths. The IPO and eventual debut of Guotai Junan Securities likewise took the shine (and money) away from the rest of the market. Guotai surged 44% on its trading debut. Some pundits such as Ben Kwong said more supply from IPOs is actually good because they help cool down China’s overheating equities market.
Read on…
Chinese shares crumble on supply woes. The Shanghai Composite Index ended the day 7.38% lower, its biggest loss since January 19. The CSI300 index also tumbled 7.8%. Other major Asian markets were also down, with the Nikkei losing 0.3% at its close, while the Hang Seng Index was last seen 1.6% lower. CNBC
HSBC bids PMIs goodbye. The British lender has ended its collaboration with Markit on surveys of the manufacturing and service sectors in emerging markets around the world. Financial Times (paywall)
Japan’s job market stable. The jobless rate remained at an 18-yar low of 3.3% for a second straight month in May. The rate was in line with forecasts. Financial Times (paywall)
Guotai Junan Securities shines on debut. The stock of China’s largest brokerage by revenue soared 44% on its initial trading day in Shanghai, triggering a 30-minute suspension. But with the overall market looking grim, the outlook for the stock is not that promising. Bloomberg
Hong Kong rejects Jetstar’s bid to be the city’s fifth airline. After four moths of deliberations including public hearings, the Air Transport Licensing Authority turned down Jetstar’s request, which faced oppositions from Hong Kong’s four existing airlines including Cathay Pacific. South China Morning Post (paywall)
Photo credit: Jessie Wang via Flickr