Asian equities were largely higher, though China and Hong Kong were off.
Asian equities were largely higher, though China and Hong Kong were off. Shanghai, Shenzhen, and the STAR Board were off -0.34%, -0.36%, and -0.3%, respectively, on moderate volume while the Hang Seng was off -0.36% on moderate volume as well. The Hang Seng has rallied up to 26,038 with 26,500 short-term resistance. If we can punch above that level, game on. Headlines are screaming about real estate developer Modern Land (1107 HK) missing a bond repayment of $250 million. The company’s equity market cap is $136 million, making it a micro-cap and highlighting the fact that the debt outstanding was twice the company’s market cap. The company is having an issue because it is clearly highly levered. Yes, it adds to the concerns surrounding Evergrande though I would like to reiterate the attention being paid by policymakers to prevent Evergrande from becoming a financial crisis.
