China's Property Sales Decline Slowed, June Auto Sales Turned Down

Li Chen
02 Jul, 2024
Hong Kong

Market indexes in Hong Kong rebounded after investors returned from a public holiday and reacted for the first time to the latest updates in manufacturing activities. 

The Hang Seng index jumped more than 0.5%, but the indexes in mainland China continued to drift lower. 

The Caixin manufacturing purchasing managers' index advanced to 51.8 in June from 51.7 in the previous month, S&P Global reported Monday. 

The private survey, which tracked a wider set of small and medium enterprises with significant activities, contrasted with the government data, which showed contraction for the second month in a row. 

The Hang Seng index has been under pressure after peaking on May 20 due to a weak policy response, a lack of progress in the revival of the property market, and a rising tide of capital flight. 

Moreover, Chinese policymakers are struggling to hold the yuan as the Bank of Japan lets the yen drift to a new 38-year low and avoids expensive market intervention. 

The weaker yen is putting additional pressure on the yuan as businesses keep foreign earnings overseas and more capital leaves China for the third year in a row. 

 

China Stock Movers 

The CSI 300 index decreased 0.03% to 3,476.93, and the Hang Seng index jumped 0.5% to 17,815.61. 

Li Auto jumped 5.3% to HK$74.0 after the leading electric vehicle maker reported a rise in sales in June. 

China's automobile sales contracted in June by 2.9% to 1.91 million units, the first monthly decline since January. 

However, sales in the first-half increased 2.5% to 9.65 million units, according to the data released by the CPCA. 

Chinese property developers edged higher after the decline in home sales eased in June. 

Top 100 developers reported home sales declined 16.7% to 438.9 billion yuan, or $60.4 billion, but advanced 36% from May, according to data released by CRIC. 

Property transactions improved the most in the top-tier cities of Beijing, Shanghai, Shenzhen, and Guangzhou. 

The average price of a new home increased by 0.2% in 100 large cities, slightly weaker than the 0.2% increase in May. 

China's new home sales at the top 100 real estate companies in the period between January and June plunged 41.6% from a year ago, the China Index Academy said in a report released on Monday.