China's Real Estate Stocks Higher On Fresh Support Talk

Regional equity market sentiment is mostly positive today. We did have modest positive leads from US & EU markets during Monday trade. US futures are a touch higher (Eminis last near 4446), but the main focus has been on fresh China policy support/stimulus, particularly in the property segment.

• Onshore China media has been focused on further property market support after the authorities urged local financial institutions to extend credit support to the troubled developer sector. The MNI policy team notes that property market restrictions may be eased in H2 (most likely after the July Politburo meeting).
• Other focus points are on boosting business confidence and consumption, see this link for more details.
• The CSI 300 is 0.63% higher at the break, last near 3870 in index terms. The CSI 300 real estate sub index surged at the open but is now up only a modest 0.12%. A Bloomberg measure of real estate owners and developers is doing better at +1.29%. The HSI is +1.53% at the break, the tech sub-index +2.06%.
• Elsewhere, Japan stocks are struggling for positive traction. The Topix last down slightly, while the Nikkei 225 was around flat.
• The ASX 200 is up over 1.10% with banks and mining related names leading the move higher.
• The Kospi is +1.34% firmer, while the Taiex has rallied by a similar amount. In SEA most markets are higher, but gains are more modest at this stage.