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Business and Market Discussion / View from mainland China

2021-09-20

Business and Market Discussion / View from mainland China

2021-09-20
 The moment of truth for troubled property developer China Evergrande has arrived, after Chinese authorities told major lenders not to expect interest payments from the firm this week. On September 23, Evergrande is due to pay US$83.5 million in interest for a dollar-denominated note, in addition to 232 million yuan (US$36 million) for a renminbi note.

Signs of contagion are already visible in the financial markets. The seven-day repo rate, an indicator for interbank borrowing costs, jumped 14bps Friday to 2.4%, the highest since June 30. Some banks in China appear to be hoarding yuan at the highest cost in almost four years, as they prepare for a liquidity squeeze. Chinese junk bond yields hit an 11-year high Friday, printing 14.34%, the highest level since 2011.

Hang Seng futures are pointing to losses of about 0.5% for Hong Kong stocks at the open, after they snapped a four-day losing streak Friday, with the Hang Seng rebounding from a 10-month low and tech firms clawing back some of the week's steep losses. The Hang Seng Index rose 1% Friday, or 252 points, to 24,920. Still, the index lost 4.9% for the week, the biggest pullback in a month. The Hang Seng Tech Index climbed 3.5% Friday but was down 4.4% over the week.

On Monday’s Money Talk, we’re joined by Alex Wong of Ample Capital and John Schofield, Managing Director at Tempus Investment. With a view from Mainland China is Independent Economist, Andy Xie.

Money Talk

A fast moving and topical business and finance show bringing you breaking business and economic news and financial market updates. Presented by former CEO and investment bank global trading head Peter Lewis, with over 30 years' industry experience. Join Peter and his expert guests for analysis and discussion on the day's top business stories live every weekday morning 8 to 8:30 a.m. on RTHK Radio 3. We have a podcast to download after the show and you can also listen through the RTHK Radio 3 website live or later in the day. We welcome your questions, comments and feedback to read out in the show. You can email us at moneytalk@rthk.hk, post on our Facebook page "Money Talk on RTHK Radio 3 " or find us on twitter "MoneytalkRadio3") .
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