From BrainTrust Cohn & Wolfe: 2024-05-18 11:47:08

The Chinese government’s new support package for the housing market boosts Chinese stocks and commodity prices, with copper hitting record highs. Measures include easing mortgage regulations, reducing down payments, and providing $42 billion for surplus property acquisition to create affordable housing.

The special treasury bond auction and positive economic indicators shape a cautiously optimistic outlook. China’s industrial production grows by 6.7% in April, surpassing expectations. Retail sales slow, but unemployment drops to 5.0%. Investor sentiment is upbeat, with stock indices like Shanghai Composite and Hang Seng seeing gains.

Real estate stocks, such as Greenland Holdings and Poly Real Estate, surge over 10%. Hang Seng Index reaches a nine-month high, led by Country Garden Services Holdings and Ping An Insurance. Chinese ADRs in the U.S., like Alibaba and PDD, see modest gains. Tech stocks and copper prices also rise, reflecting positive market sentiment.



Read more at BrainTrust Cohn & Wolfe: China’s Property Market Boost: Stocks Surge, Copper Hits Highs