China’s Kaisa needs external help for debt payment, NDRC meets with property developers

Dhwani Mehta FXStreet

China’s National Development and Reform Commission (NDRC), the country’s state planner, held meetings with banks and property developers in Shenzen on Monday, Reuters reports, citing an unnamed source.

China Vanke, Kaisa Group, Ping An Bank, China Citic Bank, China Construction Bank and CR Trust met with the NDRC on Monday.

In other news, Reuters reported that the Chinese property developer Kaisa said it needed external help to pay investors, workers and suppliers.

Meanwhile, Bloomberg is reporting that Goldman Sachs Asset Management “has been adding a “modest amount of risk” through high-yield bonds issued by China property developers and denominated in US dollars.”

Market reaction

It’s worth noting that China's investment-grade dollar notes weakened further on Monday as investors eyed possible contagion from the property industry.

The futures tied to the S&P 500 index drop 0.21% on the day while AUD/USD is down 0.18% on a daily basis, currently trading at 0.7407.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD flat lines around 1.1900; looks to US NFP report for fresh directional impetus

The EUR/USD pair is seen oscillating in a narrow trading band around the 1.1900 mark during the Asian session on Wednesday as traders opt to wait for the release of US monthly employment details before placing fresh directional bets.

GBP/USD recovers losses despite rising UK political risks, BoE rate cut bets

Pound Sterling advances against the US Dollar after registering modest losses in the previous session, trading around 1.3650 during the Asian hours on Wednesday. The pair could extend losses as the Pound Sterling faces pressure from rising political risks in the UK and growing expectations of near-term Bank of England rate cuts.

Gold awaits US Nonfarm Payrolls data for a sustained upside

Gold remains capped below $5,100 early Wednesday, gathering pace for the US labor data. The US Dollar licks its wounds amid persistent Japanese Yen strength and potential downside risks to the US jobs report. Gold holds above $5,000 amid bullish daily RSI, with eyes on 61.8% Fibo resistance at $5,141.

Bitcoin, Ethereum and Ripple show no sign of recovery

Bitcoin, Ethereum, and Ripple show signs of cautious stabilization on Wednesday after failing to close above their key resistance levels earlier this week. BTC trades below $69,000, while ETH and XRP also encountered rejection near major resistance levels. With no immediate bullish catalyst, the top three cryptocurrencies continue to show no clear signs of a sustained recovery.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.