Hong Kong Property Stocks Surge as Country Garden Extends Bond Deadline
Hong Kong’s real estate stocks experienced a surge in value on Monday following reports that Country Garden Holdings, an embattled developer, won approval to extend payments for an onshore private bond over the weekend. Additionally, some Chinese banks cut mortgage rates on Friday, further contributing to the positive sentiment surrounding the property market.
Country Garden shares jumped 7.87% and shares of Evergrande rose 7.27% as investors reacted positively to the news. Other real estate companies also saw significant gains, with Longfor Group spiking 9.44% and China Resources Land gaining 9.8%.
As of 10 a.m. Hong Kong time, the Hang Seng Mainland Properties Index was up by 7.32% compared to its previous close, representing its largest single-day gain since July 25. This surge in property stocks suggests renewed confidence in the market amid recent developments in the sector.
New Zealand Trade Expands in Second Quarter
Government data revealed that New Zealand’s trade expanded in the quarter ending June, with total trade reaching 51.8 billion New Zealand dollars, a 4.9% increase compared to the same period in 2022.
Exports of goods and services for the quarter amounted to NZ$25.3 billion, surpassing the NZ$23.1 billion recorded a year ago. Imports of goods and services also showed growth, reaching NZ$26.6 billion compared to NZ$26.3 billion in the previous year.
Analysts attribute this expansion to the recovery from the impact of the COVID-19 pandemic and increased global demand for New Zealand goods and services. The positive trade figures suggest a favorable economic outlook for the country.
Arm Targets $47 to $51 per Share in IPO: Reuters
Semiconductor and software design company Arm is reportedly aiming for a listing price between $47 and $51 per share for its initial public offering (IPO), according to sources familiar with the matter cited by Reuters. This price range would translate to a valuation of $50 billion to $54 billion.
Arm is set to begin marketing its IPO next week, with Japanese investment holding company SoftBank, its parent company, closely monitoring investor demand. If investor demand proves strong, SoftBank could potentially raise the IPO’s price range.
Traders Bet Federal Reserve is Done Hiking Rates
Traders are increasingly confident that the Federal Reserve may halt further rate hikes this year following the release of August’s unemployment rate, which indicated a cooling labor market. According to the CME FedWatch Tool, markets are currently pricing in a 93% likelihood that the Fed will hold rates in September, up from 88% the previous day.
Additionally, the chances of the central bank refraining from rate hikes in November have risen to 65%, up from 58.9% the day before. These developments reflect expectations of a more accommodative monetary policy in the near term.
Highly Anticipated Arm IPO Could Arrive Later this Month
The highly anticipated initial public offering (IPO) of Arm, a SoftBank-backed semiconductor and software design company, could debut later this month, marking a significant test for market sentiment. Wall Street firm Roth MKM predicts that Arm may launch its IPO roadshow as early as next week, with trading expected to commence before September 20.
Arm’s IPO is eagerly anticipated due to its advanced chip designs found in most smartphones globally. The success of the IPO will serve as an indicator of whether the market is ready to rebound after a period of low IPO activity caused by higher interest rates.
Explosive Rally in VinFast Fades Swiftly
Vietnamese electric vehicle (EV) maker VinFast experienced a swift decline in its stock price, dampening its status as a meme stock. After an impressive six-day winning streak, VinFast shares plummeted by 60% this week, erasing a significant portion of its gains since its market debut.
According to Vanda Research, retail participation in VinFast remains lower compared to other popular Asian carmakers during their peak popularity. This decline in stock price highlights the volatility and unpredictable nature of meme stocks in the market.