What do investors (in Chinese equities) want? It has become harder for Chinese policymakers and regulators to read the minds of investors as they tried to come up with several measures — from rate cuts to easing margin loan rules — just to support the market and keep it from falling. But so far, nothing seems to work. The Shanghai Stock Index has recently become the laggard among Asian markets.
The bearish mood has resulted in the weak performance of a new entrant in the Chinese stock market – Guotai Junan Securities – which rose 77% in four days. According to Bloomberg, that’s the worst start among 190 IPOs in the mainland bourses so far this year. Only in China, you say, where a 77% gain in four days is still not enough.
Despite the gloomy stock market, or because of it, more Chinese firms are looking at Hong Kong to raise funds. The latest to join the fray is China Zheshang Bank, which plans to raise around $1 billion as early as the fourth quarter, according to the Wall Street Journal. Meanwhile, in Japan, young citizens are no longer as thrifty as their elders, as Bloomberg noted that the 20-something generation are spending more and saving less, which at this point is what the economy needs. Read on..
Chinese shares on a downturn despite government’s efforts to prop up the market. The Shanghai Composite Index lost 3.5% and the CSI300 index fell 3.4% at the close. Other major Asian markets were trading higher. The Nikkei was up 1.1% and the Hang Seng Index was last seen 0.4% higher. Reuters/CNBC
Young Japanese spending more, saving less. Good news for Asia’s second-largest economy that’s been aiming for faster growth through spending and investment. Japan’s 20-something citizens are spending more on cars, clothes, alcohol, something that may invite frowns and raised eyebrows from the older, thriftier generation. Bloomberg
China Huarong Asset Management hires another adviser for planned HK IPO. China’s biggest bad loan buyer has hired China International Capital Corp. as an additional adviser for its planned up to $3 billion IPO in Hong Kong. This brings the number to five from the current four – Citigroup, Goldman Sachs, HSBC and ICBC International. The Wall Street Journal (paywall)
China Zheshang Bank eyes $1 billion IPO in Hong Kong in the fourth quarter. Tighter regulatory rules at home are driving Chinese lenders such as China Zhenshang to raise funds and one of the favored avenues is to launch an IPO in the former British colony, where investors, especially those from overseas, use the city as a gateway to get an exposure in the mainland. The Wall Street Journal (paywall)
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