Here's what happened in China's markets today (9/1)

1. A growing number of Chinese cities are heeding the call to relax property purchase rules to help reignite demand.

The cities of Xiamen and Wuhan followed tech and manufacturing hubs Shenzhen and Guangzhou, as well as four other cities, in allowing homebuyers to avail of lower loan rates for first-time purchases. Initial down payments were also lowered to 20% for first-time buyers and to 30% for second-time buyers - significantly lower than the prevailing 50% or higher down payment often sought by banks. However, two of China’s most important cities - Beijing and Shanghai - have yet to loosen their property purchase rules. Existing homeowners with mortgages can also renegotiate with banks to lower their mortgage rates following repeated rate cuts by the PBoC this year. $Global X MSCI China Real Estate ETF(CHIR)$

2. A day after Huawei released its latest smartphone model, the Mate 60 Pro, more information about the device is coming to light and telling us just how advanced it is.

That includes #5G speeds that rival those of the latest iPhone and the ability to make satellite calls. This despite #Huawei being prevented from accessing advanced US and Taiwan-made chips to power its smartphones. The company’s 5G chip is said to be locally produced, putting China’s chip-making capabilities well ahead of what US government officials thought possible at this point. Hundreds of people lined up outside Huawei retail stores to be among the first owners of the #Mate60Pro. $Taiwan Semiconductor Manufacturing(TSM)$ $SENSETIME-W(00020)$

3. Hong Kong’s stock market was closed the entire day as the city prepared for the impact of a huge storm called #Saolo, raising the storm signal level to 10 - the highest level - by the evening.

It’s the strongest storm to hit #HongKong since 2018. But the mainland markets were open and posted modest gains on growing optimism about Beijing’s intensifying efforts to restore stability to the property market and cut transaction costs on stock purchases. #CountryGarden, meanwhile, delayed a vote by onshore creditors about possibly extending repayment deadline on about $500 million of bonds, as news of more supportive measures trickled in.

4. Canada’s largest pension fund, CPP Investments, trimmed staff at its Hong Kong office as economic difficulties and growing geopolitical tensions forced it to review its exposure to China.

They join other Canadian #pensionfunds in reducing China holdings, including the Ontario Teachers’ Pension Plan. Investments in China by foreign private equity funds have dried up largely due to political considerations, falling from a high of $300 billion in 2016 to a mere $74 billion last year and just $11.6 billion so far in 2023. Without a recovery in foreign investor appetite, China’s capital markets need to rely more on domestic investors who hold $40 trillion in savings. $KraneShares Bosera MSCI China A 50 Connect Index ETF(KBA)$ $iShares MSCI China ETF(MCHI)$ $iShares China Large-Cap ETF(FXI)$ $KraneShares CICC China Leaders 100 Index ETF(KFYP)$

5. Ke Holdings, a leading Chinese platform for housing transactions and services, announced 6-month results that defied the weak property market.

Net revenue grew 51% to $5.4 billion, while net profits reached $556 million - a turnaround from the $340 million loss the company suffered during the same period last year. For the second quarter, the company’s revenues of $2.7 billion blew away street expectations of $2.23 billion, while its adjusted earnings per share of $0.28 was more than double the $0.12 expected by the market. Ke Holdings also announced a doubling of its share buyback program to $2 billion until August 31, 2024. $KE Holdings Inc.(BEKE)$ $KE Holdings Inc.(02423)$