Tag: Yahoo Finance

Sun Hung Kai Properties, Hongkong Land Favored, Morningstar Says

Oct.21 -- Phillip Zhong, senior equity analyst at Morningstar Investment Management Asia, talks about China's real estate market, the outlook for the developers and landlords. China’s home-price growth slowed for a fourth month in September, as cash-strapped developers cut prices to speed up sales. Zhong also discusses how the protests are affecting Hong Kong's property market. He speaks with David Ingles and Yvonne Man on "Bloomberg Markets: Asia."...

China Banks Unexpectedly Keep Loan Prime Rate Steady

(Bloomberg) -- China’s base rate for new corporate loans stayed unchanged in October, defying expectations of a reduction as the economy sees its slowest pace of growth since the early 1990s.The one-year loan prime rate was kept at 4.2%, according to a statement from the People’s Bank of China on Monday. That compares to the 4.15% median estimate compiled by Bloomberg. The five-year tenor was also kept unchanged at 4.85%.The LPR is a revamped market indicator of the price that lenders charge clients for new loans, and is linked to the rate at which the central bank will lend financial institutions cash for a year. It’s made up of submissions from a panel of 18 banks, though Beijing has a role in setting the level. The rate is released monthly.A static one-year rate shows China “may be trying to balance the shrinking margins of banks with support to the real economy,”...

Normal Yield Curve Doesn’t Mean Everything’s Normal

(Bloomberg Opinion) -- As we count down to this month’s meetings of the European Central Bank and the Federal Reserve, both of which are expected to maintain their monetary easing stance, the U.S. yield curve has been quietly undoing the inversion that had raised alarms in the corridors of the world’s two most systemically important central banks. Just as I had argued that the inversion was not a reliable signal of a coming U.S. recession, we should not rush to see this return to more normal conditions as a comforting green light for what’s ahead for the economy. Instead, it is yet another reminder of how traditional market signs have been distorted by years of unconventional central bank policies.Over the last few weeks, the U.S. yield curve has been slowly and gradually regaining its more traditional upwardly sloping shape whereby longer maturity bonds trade at a higher level than their shorter-maturity...