FirstFT: China cuts its 5-year mortgage rate
China cut its mortgage rate for the second time this year as the country’s central bank seeks to limit the fallout from a liquidity crunch in the housing sector.
The five-year prime lending rate was cut to 4.3% from 4.45% yesterday, beating the median forecast of economists polled by Bloomberg and matching a rate cut in May that was the largest on record.
The reduction in the benchmark prime rate will reduce borrowing costs on new mortgages nationwide and boost the country’s indebted real estate sector, which accounts for nearly a third of annual economic output.
Mainland Chinese stocks rebounded in response to the central bank’s decision – the CSI 300 gauge of stocks listed in Shanghai and Shenzhen closing up 0.7% yesterday. As U.S. markets closed, however, U.S. stocks suffered their biggest drop in two months, with tech stocks falling sharply on worries about the bleak economic outlook and fears that members of the Federal Reserve were adopting a hawkish tone. at a symposium this week.
Thanks for reading FirstFT Asia. – Emily
Five other stories in the news
1. Activists say Singapore’s repeal of gay sex ban is not enough LGBT+ activists have dismissed Singapore’s decision to repeal a law banning sex between men as a “frontage”. As the Asian city-state said on Sunday it would scrap colonial-era law criminalizing same-sex sex, it also announced plans to amend the constitution to ‘protect’ the definition of marriage as a heterosexual union. against any legal challenge.
2. China steps up measures to deal with heat wave Chinese authorities have stepped up emergency measures to deal with extreme heat and a crippling drought in the country’s southwest that has forced cities to dim lights and left electric vehicle drivers struggling to recharge their cars. At least 50 mobile generators have been dispatched to help stabilize the local power supply, the State Grid Corporation of China said.
3. Russia accuses Ukraine of killing the daughter of a Putin supporter Russia’s FSB security service has blamed Kyiv for the car bombing that killed the daughter of a prominent Vladimir Putin supporter, accusing a Ukrainian woman of planting the car bomb before getting away flee to Estonia. Ukraine has denied any involvement in the attack.
4. Kishida tests positive for Covid as public support wanes Fumio Kishida, the Japanese Prime Minister, has tested positive for Covid-19, the government announced yesterday. Coronavirus cases across Japan have remained at record highs, eroding Kishida’s administration’s approval rating which had remained stable since taking office last October.
5. Office rents in Singapore set to reach pre-pandemic levels The return of workers to the office this year, coupled with shutdowns in China and restrictions in Hong Kong that have forced foreign businesses to consider alternative locations, has pushed rents for prime office space in the city center to 10 .74 Singapore dollars (US$7.71) per square foot in the second quarter, according to property group JLL.
The day ahead
UK garden hose ban comes into effect South West Water will introduce a ban covering Cornwall and parts of Devon, the first such restrictions in 26 years, while Thames Water will affect 15 million customers in southern England. A ban for Yorkshire households begins on Thursday.
S&P Global/IHS Markit Composite PMI PMI data for services and manufacturing is set to be released in the euro zone, France, Germany, Japan and the United States. The Eurozone reading is expected to fall from 49.9 in July to 49.5 in August.
What else we read
The rise and rise of Korean pop culture Today, Korean culture is so pervasive in the West that K-pop idols are invited to the White House, K-pop stars are global ambassadors for luxury brands, and Korean series are breaking world records. hearing. But that wasn’t always the case. This is how the global spread of Korean pop culture has accelerated.
Soaring fertilizer prices threaten to trigger a food crisis in Africa The price of nitrogen-based fertilizers hit record highs in line with natural gas costs following the war in Ukraine. Producers have reduced use in response, threatening to reduce food production and aggravate a global food crisis and raising the prospect of social unrest on the continent.
How a 20-year-old college student made $110 million riding the meme stock wave He may not have succeeded in his bid to become America’s youngest president at the age of 18, but last week Jake Freeman became one of the youngest investors to generate a nine-figure windfall by trading the same stock frenzy.
A Taiwan War Could Go Nuclear The most important question regarding a potential war in Taiwan between the United States and China is whether such a conflict could remain non-nuclear. Policymakers and the American public can no longer ignore the fact that a new nuclear age has begun, writes Michael Auslin, author and fellow at the Hoover Institution at Stanford.
Why staff are sent to bond with nature According to a recent global survey, most workers are unable to explain their own company’s climate commitments. Could environmental retreats – from sleeping in the woods to hugging trees – solve the problem?
Have you fallen for the madness of canned wine? These six brands of canned vintages are much better than you think.