Country Daily
China Economics Money Supply / China Property / China Internet
Analyst
Key Indices
Top Stories
Economics | Money Supply
Aug 26's M1 growth edged up to 4.1% yoy, in line with consensus, while M2 eased to 7.5% yoy. New bank loans turned positive at Rmb0.06t but missed the Rmb0.40t consensus. New TSF of Rmb1.66t was also below forecast as government bond issuance slowed. Outstanding bank loans growth fell to 4.9% yoy, a record low, while TSF growth eased to 7.2% yoy. With the recent push to accelerate FAI project implementation, new corporate loans could grow in the months ahead.
Sector Update | China Property
High-frequency data for 1-13 Sep 26 show the split between Tier 1 and lower-tier cities widening again. New-home sales in the four Tier 1 cities rose 23% yoy but fell 12% and 28% in Tier 2 and Tier 3 cities respectively, leaving 19 major cities down 3% yoy. Second-hand transactions in three Tier 1 cities rose 13% yoy. Tier 1 inventory months kept falling, led by Shenzhen. Maintain UNDERWEIGHT on China's property sector.
Sector Update | Internet
Key investor focus areas discussed during the marketing trip included: a) AI capex requirements, b) funding methodology, c) investment payback period, and d) open-source AI monetisation and the competitive landscape. We foresee AI/AI Cloud, online gaming and OTAs as poised for further re-rating, supported by stronger growth delivery and reduced regulatory pressures. Maintain MARKET WEIGHT. Top BUYs: Alibaba, NetEase, Z.ai and TCOM.
Top Stories
Economics | Money Supply
Aug 26's M1 growth edged up to 4.1% yoy, in line with consensus, while M2 eased to 7.5% yoy. New bank loans turned positive at Rmb0.06t but missed the Rmb0.40t consensus. New TSF of Rmb1.66t was also below forecast as government bond issuance slowed. Outstanding bank loans growth fell to 4.9% yoy, a record low, while TSF growth eased to 7.2% yoy. With the recent push to accelerate FAI project implementation, new corporate loans could grow in the months ahead.
Sector Update | China Property
High-frequency data for 1-13 Sep 26 show the split between Tier 1 and lower-tier cities widening again. New-home sales in the four Tier 1 cities rose 23% yoy but fell 12% and 28% in Tier 2 and Tier 3 cities respectively, leaving 19 major cities down 3% yoy. Second-hand transactions in three Tier 1 cities rose 13% yoy. Tier 1 inventory months kept falling, led by Shenzhen. Maintain UNDERWEIGHT on China's property sector.
Sector Update | Internet
Key investor focus areas discussed during the marketing trip included: a) AI capex requirements, b) funding methodology, c) investment payback period, and d) open-source AI monetisation and the competitive landscape. We foresee AI/AI Cloud, online gaming and OTAs as poised for further re-rating, supported by stronger growth delivery and reduced regulatory pressures. Maintain MARKET WEIGHT. Top BUYs: Alibaba, NetEase, Z.ai and TCOM.
Analyst
Key Indices
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