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Hong Kong stocks continued their policy-driven rebound today.
Yesterday, Mr. Mou analyzed two positive factors emerging in Hong Kong stocks:
First,Introducing private credit default swaps (CDS) as a pilot for private real estate bond issuance reflects a boost in private enterprise confidence; as the saying goes, 'a duck knows when the river water warms.'
Secondly, the China Banking and Insurance Regulatory Commission announced that it has completed platform economy special rectifications and will move towards normalized supervision next.
These two events are essentially measures by higher authorities to stabilize the confidence of private entrepreneurs. I have repeatedly analyzed that the core issue troubling both A-shares and Hong Kong stocks at present is a confidence problem. Over the past two years, continuous stringent regulation targeting industries such as internet, education, and real estate has significantly impacted private enterprise confidence. With increasing economic downward pressure, consumer confidence has also been affected. Without confidence, April’s credit data showed that households even began actively deleveraging, making stabilizing business and consumer confidence an urgent task.
April credit data revealed a decrease of 217 billion yuan in household loans, with net financing turning negative—a rare occurrence. The ongoing pandemic and income uncertainty led to very low consumption willingness. Particularly, medium- and long-term loans fell by 60.5 billion yuan year-on-year, down 552.3 billion yuan from last year—the lowest level on record. Efforts to stabilize the property market have shown limited success, and households are accelerating deleveraging, sparking discussions about early mortgage repayment.
In this morning’s session, the People's Political Consultative Conference Daily published 'Seizing the Spring of “Digital Economy” Development - Summary of Preparations for the National Committee of the Chinese People's Political Consultative Conference’s Symposium on Promoting Continuous Healthy Development of the Digital Economy'...
Yesterday, Mr. Mou analyzed two positive factors emerging in Hong Kong stocks:
First,Introducing private credit default swaps (CDS) as a pilot for private real estate bond issuance reflects a boost in private enterprise confidence; as the saying goes, 'a duck knows when the river water warms.'
Secondly, the China Banking and Insurance Regulatory Commission announced that it has completed platform economy special rectifications and will move towards normalized supervision next.
These two events are essentially measures by higher authorities to stabilize the confidence of private entrepreneurs. I have repeatedly analyzed that the core issue troubling both A-shares and Hong Kong stocks at present is a confidence problem. Over the past two years, continuous stringent regulation targeting industries such as internet, education, and real estate has significantly impacted private enterprise confidence. With increasing economic downward pressure, consumer confidence has also been affected. Without confidence, April’s credit data showed that households even began actively deleveraging, making stabilizing business and consumer confidence an urgent task.
April credit data revealed a decrease of 217 billion yuan in household loans, with net financing turning negative—a rare occurrence. The ongoing pandemic and income uncertainty led to very low consumption willingness. Particularly, medium- and long-term loans fell by 60.5 billion yuan year-on-year, down 552.3 billion yuan from last year—the lowest level on record. Efforts to stabilize the property market have shown limited success, and households are accelerating deleveraging, sparking discussions about early mortgage repayment.
In this morning’s session, the People's Political Consultative Conference Daily published 'Seizing the Spring of “Digital Economy” Development - Summary of Preparations for the National Committee of the Chinese People's Political Consultative Conference’s Symposium on Promoting Continuous Healthy Development of the Digital Economy'...
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