This article is an on-site version of our FirstFT newsletter. Subscribe to our Asia, Europe/Africa or America edition to get it straight to your inbox every weekday morning
China has cut its mortgage rates for the second time this year as the country’s central bank tries to mitigate the effects of a liquidity crisis in the real estate sector.
The prime rate for five-year loans was cut to 4.3 percent from 4.45 percent yesterday, ahead of the average economist forecast polled by Bloomberg and equal to a May rate cut that was the largest ever.
The cut in the primary loan interest rate will lower the cost of borrowing new mortgages across the country and boost the country’s debt-laden real estate sector, which accounts for nearly a third of annual economic output.
Mainland China shares jumped in response to the central bank’s move — with the CSI 300 meters of listed shares of Shanghai and Shenzhen closing 0.7 percent yesterday. However, at the close of US markets, US equities suffered their biggest drop in two months, with technology stocks falling sharply on concerns over the bleak economic outlook and concerns that members of the Federal Reserve will take an aggressive note at a symposium this week.
Thanks for reading FirstFT Asia. — Emily
Five more stories in the news
1. Activists Say Singapore’s Repeal of Gay Sex Ban Isn’t Enough LGBT+ activists have dismissed Singapore’s decision to repeal a law banning sex between men as ‘window dressing’. While the Asian city-state said on Sunday it would repeal the colonial law criminalizing gay sex, it also announced plans to amend the constitution to “protect” the definition of marriage as a heterosexual union from legal challenges.
2. China steps up heat wave measures Chinese authorities have stepped up emergency measures to deal with extreme heat and a crippling drought in the southwest of the country that has forced cities to dim lights and drivers of electric vehicles struggled to charge cars. At least 50 mobile generators have been deployed to help stabilize the local power supply, the State Grid Corporation of China said.
© China map image
3. Russia accuses Ukraine of murdering Putin supporter’s daughter Russia’s FSB security service has blamed Kiev for the car bomb attack that killed the daughter of a prominent Vladimir Putin supporter, and accuses a Ukrainian woman of planting the car bomb before fleeing to Estonia. Ukraine denied any involvement in the attack.
4. Kishida tests positive for Covid as public support dwindles Japan’s prime minister Fumio Kishida has tested positive for Covid-19, the government said yesterday. Coronavirus cases across Japan have remained at record highs, eroding the approval rating for the Kishida administration, which had been stable since he took office last October.
5. Singapore office rents will reach pre-pandemic levels The return of workers to the office this year, coupled with lockdowns in China and restrictions in Hong Kong that have forced foreign companies to consider alternative locations, pushed rents for prime office space in the city center to S$10.74 (US$7. 71) per square foot in the second quarter, according to real estate group JLL.
the next day
UK ban on garden hoses comes into effect South West Water will introduce a ban on Cornwall and parts of Devon, the first such restrictions in 26 years, while Thames Water’s will affect 15 million customers in the south of England. A ban on households in Yorkshire begins on Thursday.
S&P Global/IHS Markit Composite PMI Purchasing Managers Index data for services and manufacturing will be published in the Eurozone, France, Germany, Japan and the US. The eurozone reading is expected to fall from 49.9 in July to 49.5 in August.
What else do we read
The Rise and Rise of Korean Pop Culture Today, Korean culture is so widespread in the west that K-pop idols are invited to the White House, K-pop stars are global ambassadors for luxury brands, and Korean series are breaking viewing records. But this was not always the case. This is how the global spread of Korean pop culture accelerated.
Rising fertilizer prices threaten to trigger the food crisis in Africa The price of nitrogen-based fertilizers has reached record highs in line with natural gas costs in the wake of the war in Ukraine. In response, growers have reduced use, threatening to reduce food production and exacerbating a global food crisis, raising the prospect of social unrest on the continent.
How A 20-Year-Old Student Made $110 Million From The Meme Stock Wave He may not have succeeded in his bid to become the youngest US president at age 18, but last week Jake Freeman emerged as one of the youngest investors to generate a nine-figure windfall trading the meme stock frenzy.
A war over Taiwan could turn nuclear The single most important question about a potential war over Taiwan between the United States and China is whether such a conflict can remain non-nuclear. Policymakers and the American public can no longer ignore the fact that a new nuclear age has arrived, writes Michael Auslin, an author and fellow of the Hoover Institution at Stanford.
Why staff are sent to bond with nature According to a recent global survey, most workers are unable to explain their own company’s climate commitments. Can area retreats — from sleeping in the woods to cuddling with trees — solve the disconnect?
Eat Drink
Have you cracked down on the canned wine craze? These six brands of vintage tins are way better than you think.