China reopens/Banking conditions ahead of earnings and Fed speak/Small business 'uncertainty' at record high/Other

Chinese people are back from Golden Week vacation and the Chairman of the National Development and Reform Commission Zheng Shanjie held a press conference on the fiscal steps they are taking but the lack of firm detail was reason for the Hang Seng to take a break from its violent rally. It fell 9.4% overnight, though still up 23% year to date. Metals are pulling back too with copper down 2.6% and iron ore lower by 5.2%. 

On the steps to boost interest in buying up some of the excess home inventory, I mentioned the Reuters story yesterday and today Bloomberg News is saying "Beijing city saw expressions of intent to buy new homes double in the first three days of October" CCTV reported. "In Shenzhen, sales of new homes jumped more than 10 times in the first six days of the month, while used home transactions more than tripled, Cailian reported, citing Shenzhen Centaline Property figures. Real estate agents in Shanghai rolled out a 'no closing hour' policy after visitors increased, while some buyers in Shenzhen even paid deposits for apartments without viewing them in person, according to the Securities Times." Hopefully there is follow through. 

Hang Seng

The Dallas Fed released its October Banking Conditions Survey yesterday and said "Loan volume declined in October despite the drop in loan prices, which retreated for the first time since 2021. Overall, credit tightening continued and loan nonperformance rose but at slower pace for both. Bankers’ outlooks reversed sharply and turned optimistic. They expect a significant improvement in loan demand and business activity six months from now, although they foresee continued deterioration in loan performance in the next six months."