1.The Shanghai stock index fell 2.49%
The Shanghai Composite Index fell 2.49% to 3,381.18 points, the Shenzhen Component Index fell 3.67% to 1,403.64 points, and the Growth Enterprise Index fell 4.11% to 3,32.84 points. The turnover of Shanghai and Shenzhen stock markets exceeded RMB 1 trillion for the fifth consecutive trading day. The Hang Seng Technology Index’s decline expanded to 7%, a new low since the index was launched. The Hang Seng Index fell more than 3.5%, JD Health fell more than 20%, Alibaba Health and the Global Data Solutions Limited fell nearly 20%, and Meituan fell nearly 14%.
2.Auto insurance in Henan floods with an estimated loss of 5.2 billion
According to data from the Henan Insurance Industry Association, 180,000 claims were reported in this heavy rain disaster, of which auto insurance accounted for nearly 95%, and the estimated loss amounted to 5.2 billion yuan. The number is still rising. The huge number of claims has made the sluggish auto insurance market worse. Judging from the current overall market structure, PICC P&C, Ping An P&C and CPIC P&C have divided the major auto insurance market shares, accounting for approximately 30%, 20% and more than 10% respectively.
3.China Evergrande’s stock price plummeted one after another
Today, China Evergrande issued a pre-market announcement stating that it decided to cancel the special dividend plan considering the current market environment and the rights and interests of shareholders and creditors. In addition, the rating agency Standard & Poor’s also downgraded the rating of China Evergrande to negative. On July 27th, China Evergrande’s stock dropped by 8.35% at the opening, and dropped by more than 12% during the session. As of press time, the stock price dropped 11.33% to HK$5.95. In fact, the stock price of Evergrande has suffered severe setbacks in recent days. At present, the market value of China Evergrande has fallen below 100 billion Hong Kong dollars.
4.The global chain of off-campus education units collapsed
On July 26, New Oriental plunged 47% again, SKLEDU plummeted 45.45%, New Oriental Online fell 33.45%, and Beststudy Education Group fell 42.45%. Since the high point, New Oriental, SKLEDU, New Oriental Online, and Beststudy Education Group have fallen by 90%, 95%, 91%, and 87% respectively, leaving only HK$27.428 billion, HK$767 million, HK$3.942 billion, and HK$517 million in market capitalization respectively. Compared with the market value of the highest peak period, the Hong Kong dollar decreased by HK$246.852 billion, HK$14.573 billion, HK$39.858 billion, and HK$3.46 billion respectively.
5.China Concept Stocks’ 2021 defeat
At present, there are more than 300 Chinese stocks listed on the US stocks, and the market value of the top 3 Alibaba (36287 billion yuan), Pinduoduo (790.3 billion yuan), and JD.com (730.3 billion yuan) have lost 588.5 billion yuan and 635.9 billion yuan, 164.4 billion yuan respectively. Many Chinese concept stocks have fallen by more than 50% in the past six months. Among them, Fangduoduo has fallen by 71.62%, Youke Workshop has fallen by 70.57%, Douyu has fallen by 64.92%, and Shells listed in the second half of last year have also fallen by over 45%. On July 26, after the opening of the A-share market, major consumer stocks such as liquor, food and beverage, medicine and medical care, and medical beauty began to plummet.
6.Chinese real estate U.S. dollar debt plummets
Chinese real estate US dollar bonds continued to fall today, and Sunac China, Agile Group, Zhenro Properties Group and other companies have recorded record losses. Among them, Sunac China’s 2024 dollar bonds have fallen by a record. The company’s 5.95% bonds fell 2.1 cents to 92.9 cents per US dollar in intraday trading. Agile Group’s U.S. dollar bonds due in May 2026 have experienced a record decline. The company’s 5.5% bonds fell 1.1 cents per dollar to 95.7 cents.
7.Real estate, property stock market value evaporates over 100 billion a day
Entering July, the property market regulation has suddenly become stricter. From the central to the local level, a new round of accountability and patching has begun, and purchase restrictions, loan restrictions, and supervision have all been upgraded. The renovation of the education sector last weekend became the last straw that crushed the camel. On the first trading day after the weekend (July 26), the “distressed” sector once again hit a new low for the year, and the sector index was close to the 2018 stock market crash. The property stocks also ushered in a rare sharp drop within the scope of the property market consolidation. Shimao Services fell 20% and Country Garden Services also fell 16%.
8.Minsheng Securities’ 3.5 billion shares were frozen
On the evening of July 26, Oceanwide Holdings announced that Yantai Shan Gao Hong Hao Investment Center (Limited Partnership) sued the company and its holding subsidiary Shenyang Oceanwide to Jinan Intermediate People’s Court for contract disputes. After the company contacted the Jinan Intermediate People’s Court, the Jinan Intermediate People’s Court had frozen the 3.5 billion shares of Minsheng Securities held by the company.
By【G Translators- Financial Team】