July 17, Thursday

High-Level Voices:
China's housing prices fell at an accelerated pace in June, with new home prices recording the largest monthly decline in eight months.
Real estate investment from January to June also dropped significantly, down 11.2% year-on-year, hitting a historic low.

Overall Sentiment:
Yesterday, A-share turnover reached 1.44 trillion yuan, with the median stock price up 0.36%. After a day of volatility, the Shanghai Index barely held above 3500. The newly released housing price data, showing a sharper decline, was more convincing to the market than the previously upbeat GDP figures. Real estate-related sectors were heavily hit, and news emerged after the market closed that Vanke is seeking to extend domestic loans.
Vanke has roughly 3600 billion yuan in loans, mostly short-term debt, and with its credit rating downgraded, rolling over loans to repay old ones is no longer feasible, meaning it may struggle to repay without extensions.