STOCKS | China Vanke, Country Garden Fall As Mainland Developers Reverse Early Gains

China Vanke (01109) fell 7.5% to HK$30.68, extending its losing streak to three sessions with a cumulative decline of 11.8%, according to ETNet. The stock traded about 45.15 million shares, worth HK$1.427 billion. Mainland property shares initially rose after China last week extended the maximum term for personal housing loans from 30 years to 40 years, which was said to cut monthly repayments by about 15%. But the sector later reversed as expectations for global rate hikes increased. China Overseas (00688) fell 6.6%, Yuexiu Property (00123) dropped 13%, China Jinmao (00817) lost 15%, Longfor (00960) declined 6.2%, Sunac China (01918) fell 5.2%, and Shimao Group (00813) slipped 3.4%. The People's Bank of China and the National Financial Regulatory Administration on August 28 jointly issued a notice on reforming and improving real estate credit management and accelerating a new model for property development. Using a RMB 1 million mortgage at 3% interest under equal principal and interest repayments, ETNet reported that the monthly payment would fall from RMB 4,216.04 over 30 years to RMB 3,581.02 over 40 years, a reduction of RMB 635.02 or about 15%. Separately, Kevin Warsh's first Jackson Hole speech as Federal Reserve chair was hawkish, with remarks that better-than-expected CPI and PCE data this summer would not be enough to show a meaningful improvement in the underlying inflation trend. After the speech, interest-rate futures shifted to pricing in a 25-basis-point rate hike in September, with the probability rising to 57%.