China Const Bank (OTC:CICHF) Stock, Quote.Headers.trade-ideas

As one of the big four banks, China Construction Bank is headquartered in Beijing. The bank went public on the Hong Kong Stock Exchange in 2005 and listed shares in mainland China in 2007. Central Huijin Investment, China's sovereign wealth fund manager is the largest shareholder with a 57% share. Fullerton Financial Holdings (a subsidiary of Temasek) is the company's second-largest shareholder with a 4.99% stake. CCB strives to provide customers with comprehensive financial services. Corporate banking, retail banking, and wholesale banking business segments accounted for 36%, 57%, and 7% of profit before tax, respectively, in 2022.

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Shares in Hong Kong and China dropped Thursday on a slew of bad economic data from the housing and financial sector.

The Hang Seng Index fell 2.5% to 17,295.89 points and China’s CSI 300 index ended the day 2.1% lower at 3,533.54 points.

Hong Kong Stocks Tumble Over Ugly Chinese Housing Data; EV Makers Plunge After Tesla&#39;s Earnings Disappointment

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Binary Options: How To Capitalize On Stocks Moving In China With Low Collateral

CHINA CONSTR BANK H by China Construction Bank Corp.

China Construction Bank Corp

Shares in Hong Kong and China dropped Thursday on a slew of bad economic data from the housing and financial sector.
The Hang Seng Index fell 2.5% to 17,295.89 points and China&rsquo;s CSI 300 index ended the day 2.1% lower at 3,533.54 points.
September&rsquo;s housing prices in China <a href="https://www.bloomberg.com/news/articles/2023-10-19/china-s-home-prices-drop-at-faster-pace-in-blow-to-sentiment?srnd=premium-asia" style="color:#0563c1">fell</a> the fastest they have in 11 months, down 0.3% across 70 mainland cities and 0.48% lower for secondary market sales, representing the largest one month drop in secondary sales recorded since 2014. The value of the real estate sector overall shrunk by 2.7% in the third quarter.
Chinese-language daily Caixin reported that investment in the Chinese housing sector plunged 9.1% in the first 9 months of this year, representing an even bigger drop than for the first 8 months.
The data comes on the back of <a href="https://www.benzinga.com/markets/penny-stocks/23/10/35310061/chinas-largest-property-developer-misses-its-first-bond-payment-while-another-heads-to-court" style="color:#0563c1">the first default on US dollar bonds a day earlier</a> by Country Garden Holdings Limited (OTC: <a class="ticker" href="https://www.benzinga.com/stock/ctryf#OTC">CTRYF</a>), China&rsquo;s largest property firm by developments. Country Gardens has said that it does not think it will be able to maintain timely interest payments on its $10 billion of junk bonds, which are trading under 4 cents on the dollar now.
Country Garden <a href="https://www.scmp.com/business/china-business/article/3238439/chinese-property-developer-country-garden-denies-talk-its-founder-and-chairman-have-left-china?module=lead_hero_story&amp;pgtype=homepage" style="color:#0563c1">denied</a> a rumor going around trading desks Thursday morning that its founder Yeung Kwok-keung and chairman Hang Huiyang, who is Yeung&rsquo;s daughter, had fled China after the company missed the interest payment Wednesday. The company threatened to take legal action against rumor-mongers.
Country Garden was around 3% lower, while China Evergrande Group (OTC: <a class="ticker" href="https://www.benzinga.com/stock/egrnq#OTC">EGRNQ</a>) was down nearly 4% and Sunac China Holdings Limited (OTC: <a class="ticker" href="https://www.benzinga.com/stock/sncnq#OTC">SNCNQ</a>) tumbled 4.6% by the end of the day&rsquo;s trading in Hong Kong.
The Chinese government is in the midst of attempting to avert what looks to be a full-blown credit crunch in its housing market, even as its retail and manufacturing industries are starting to pick up.
Consumption is on the rise again after a two-year rout created by an intensive series of Covid-19 lockdowns. Output in the leisure sector was up 12.7% while IT and software was also rebounding strongly by 10.3%. Manufacturing activity rose 4.5%. That helped Wednesday&rsquo;s better-than-expected GDP data which prompted revised-higher forecasts Thursday for China&rsquo;s GDP by UBS Group AG (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ubs#NYSE">UBS</a>) and JP Morgan &amp; Chase Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>) to 5.2% for this year.
Still, consumer names were marred by the larger credit rout that is weighing on investor&rsquo;s minds Thursday. Alibaba Group Holdings Limited (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>) and Tencent Holdings Ltd (OTC: <a class="ticker" href="https://www.benzinga.com/stock/tcehy#OTC">TCEHY</a>) were both off 2.3% by the end of trading while JD.com Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jd#NASDAQ">JD</a>) continued to fall harder by 5% after downgrades earlier this week.
Regional banks face a 2.2 trillion RMB ($301 billion) capital shortfall as Local Government Financing Vehicles (LGVFs) struggle to repay portions of their borrowing due to rapidly-slowing land sales.
LGVFs are a mechanism by which local governments in China attempted to provide a cushion to plunging land prices in 2022, and the $9 trillion they have under management now looks to be under threat, according to S&amp;P Global Ratings. &nbsp;
Three banks in particular, Bank of Hangzhou Co, Bank of Chonquing Co and Bank of Chengdu Co are the most exposed to potential LGVF defaults, which analysts expect to be as high as 74% now according to Bloomberg. The defaults are on the way due to a lack of demand for land and new housing in provinces across China, which puts constraints on the cashflows of the government financing vehicles. &nbsp;
Bank of China Ltd. (OTC: <a class="ticker" href="https://www.benzinga.com/stock/bachf#OTC">BACHF</a>) and China Construction Bank Ltd (OTC: <a class="ticker" href="https://www.benzinga.com/stock/cichf#OTC">CICHF</a>) both fell 2% while Hong Kong lender HSBC plc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hsbc#NYSE">HSBC</a>) was down 2.4% on the day.
New data from the US Treasury Department Wednesday showed that Chinese investors offloaded around $21 billion of US securities in August, which were mostly sales of Treasury Bills, the highest amount in four years. Chinese investors sold an all-time record of $5.1 billion of US equities in August. &nbsp;
Maquarie Group Ltd. (OTC: <a class="ticker" href="https://www.benzinga.com/stock/mqbky#OTC">MQBKY</a>) analyst Gareth Berry said the large sale of US securities was down to China liquidating US dollar assets in the event it needed to intervene in its currency markets.
The Chinese yuan renminbi is currently trading at 7.32 RMB vs. the dollar, its lowest level in 15 years. Low domestic currency prices vs the dollar is good for companies that derive a big chunk of their income from overseas exports but bad for imports which China is increasingly reliant on.
EV makers plunged on headwinds from an upside earnings surprise announcement by BYD Company Limited (OTC: <a class="ticker" href="https://www.benzinga.com/stock/byddf#OTC">BYDDF</a>) Tuesday night in addition to disappointing earnings for Q3 from Tesla Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NYSE">TSLA</a>).
Wednesday night, Tesla <a href="https://www.benzinga.com/news/earnings/23/10/35318136/tesla-q3-earnings-highlights-revenue-miss-eps-miss-cybertruck-launch-set-for-november-and-more" style="color:#0563c1">reported adjusted earnings per share</a> of $0.66 vs. $0.73 expected and revenue of $23.35 billion vs. $24.1 billion expected, citing margin pressures associated with developing cheaper vehicle in the face of rising competition. CEO Elon Musk <a href="https://www.benzinga.com/news/23/10/35322048/tesla-ceo-elon-musk-details-enormous-challenges-in-reaching-volume-production-for-cybertruck-we-dug" style="color:#0563c1">also said the company would face &ldquo;enormous challenges&rdquo;</a> in delivering volume sales of its Cybertruck.
Days earlier, Tesla&rsquo;s main Chinese rival BYD <a href="https://www.benzinga.com/markets/asia/23/10/35308641/byd-leaps-on-record-sales-that-value-the-chinese-ev-maker-at-66-discount-to-tesla" style="color:#0563c1">said that it would report record sales and income for Q3</a> after increasing its global market presence.
Nio Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nio#NYSE">NIO</a>) and XPeng Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xpev#NYSE">XPEV</a>) both dropped over 8%, while Li Auto Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/li#NASDAQ">LI</a>) was 4% lower on the day. BYD gave back 3% after strong performance the day before on the back of its pre-earnings statement.

Hong Kong Stocks Tumble Over Ugly Chinese Housing Data; EV Makers Plunge After Tesla's Earnings Disappointment

BFTI

<li>The SGX&reg; FTSE&reg; Xinhua&reg; China A50 Index, tracks the 50 largest companies on the Shanghai and Shenzhen stock exchanges.</li>
<li>The index rose 0.38 percent on Thursday trading, to 9,523.04 points.</li>
<li>A few of the day&rsquo;s largest movers include: Shanghai Electric Group Company Limited (SHA: 601727), up 1.95 percent; China Railway Construction Corp Limited (SHA: 601186), up 1.55 percent; BYD Company Limited (SHE:002594), down 2.05 percent; China Merchants Bank Co., Ltd (SHA:600036), down 1.18 percent.</li>

	Thursday was a relatively calm day for Chinese stocks. Many of them closed the day roughly flat after initially surging in the early morning.
 Hong Hao, chief China strategist at BoCom International Holdings Co. explained that uncertainty reigns among investors, which is what ultimately determines the elevated volatility.

	However, the FTSE China A50 Index closed slightly up, with some of the stocks mentioned above driving the surge.

	So, is there a way to bet on the performance of this index over the short term without being exposed to the high risk and collateral implied in investing in the Chinese stock market right now?

	There&rsquo;s always Binary Options.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/news/15/09/5861274/chinas-weakness-isnt-all-bad">China's Weakness Isn't All Bad</a></bzrelatedlink>
<h3>What Are Binary Options? </h3>

	Investing via binary options is just that: Playing a binary event. &ldquo;Binary options are limited risk contracts based on a simple yes/no market proposition like will the markets go up by the end of the trading week,&rdquo; binary options trading site Nadex <a href="http://www.nadex.com/trade-binary-options.html">explained</a>.
&ldquo;Binary options offer traders ways to trade the most active stock indices, commodities, forex, event and bitcoin markets with relatively low collateral.&rdquo;
<h3>Using The FTSE China A50 And Binaries</h3>

	There is a way to capitalize from the moves of the FTSE China A50 Index without actually investing in the index itself. By investing in binary options, investors can bet on something as simple as: &ldquo;Will the index trade above 9,600 points this week?&rdquo;

	For those thinking the answer is yes, buying the binary options is the way to go. For those thinking the response is no, selling would be a better idea.

	Below is a list of the top five constituents of the China A50 Index. This way, investors know what they are positioned, and can make a more informed decision regarding what they think will happen in the next few days.

	<img alt="" src="https://www.benzinga.com/files/u82070/top5chinaa50.jpg" />

	Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

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China Const Bank (OTC:CICHF) Stock, Quote.Headers.trade-ideas