Summary of Key Points from the Conference Call Industry Overview - The conference call primarily discusses the **Chinese labor market** and its dynamics, focusing on hiring trends across various sectors including **services**, **manufacturing**, and **construction** [2][3][4][5]. Core Insights and Arguments 1. **Softer Labor Market**: The UBS Evidence Lab Labour Market Business Survey indicates a slight softening in hiring momentum in Q2 2025, with 41% of firms increasing hiring YoY and 37% QoQ, down from 43% and 42% in Q1 2025 respectively [2][7]. 2. **Sector-Specific Trends**: - **Service Sector**: Hiring intentions and salary growth have weakened, with 39% of service firms reporting increased hiring YoY, down from 46% in Q1 [12][22]. - **Manufacturing Sector**: Continued challenges from weak profitability and low capacity utilization have led to a decline in hiring momentum [12][22]. - **Construction Sector**: Surprisingly, hiring in the construction sector has picked up, likely due to robust infrastructure investment [12][22]. - **Exporters**: 41% of surveyed exporters reported increased hiring YoY, outperforming the average of 35% for all manufacturing firms, attributed to resilient export growth [13][17]. 3. **Policy Support**: 75% of firms received some form of policy support in Q2, with government subsidies for hiring college graduates being the most common. This support is particularly strong for exporters, with 91% receiving assistance [4][17]. 4. **Mixed Macro Picture**: The official unemployment rate decreased to 5.0% in Q2 from 5.3% in Q1, but other indicators suggest ongoing pressures in the labor market, including a decline in household income growth and cautious consumer sentiment [5][25]. 5. **Future Outlook**: Expectations for Q3 indicate a continuation of the softening trend in the labor market, particularly in the service sector, while manufacturing and construction sectors show slightly more optimism [22][31]. Additional Important Insights - **Wage Growth**: There is a notable moderation in wage growth, with fewer firms reporting increases in monthly salaries compared to previous quarters [7][10]. - **Consumer Confidence**: Despite stable consumption growth, consumer confidence remains below pre-COVID levels, indicating a cautious outlook among households [30][40]. - **Government Measures**: The government has introduced additional measures to stabilize the labor market, including increased unemployment insurance refunds and subsidies for hiring young people [17][31]. This summary encapsulates the key points discussed in the conference call, highlighting the current state and outlook of the Chinese labor market, sector-specific trends, and the impact of government policies.

Copper and potash have been included in the US Geological Survey’s draft list of critical minerals — a further step in clearing the way for broader policy support https://t.co/QgxC3Cpd9p ...

Australia’s top fuel supplier Ampol warned the country risks falling behind on renewable fuels, with investment in local production hinging on policy support through incentives or demand mandates https://t.co/NgTVH4AQYA ...

Summary of Key Points from the Conference Call Industry Overview - **Industry**: China Economics, specifically focusing on credit growth and fiscal policies in the Asia Pacific region [1] Core Insights and Arguments - **Credit Growth Trends**: Broad credit year-on-year (YoY) increased by 10 basis points to 9.2%, slightly below the consensus estimate of 9.3% [10] - **Government Bond Issuance**: In July, government bond issuance was strong at Rmb1.2 trillion compared to Rmb0.7 trillion in July 2024, contributing significantly to the credit uptick [2] - **Household Loans Decline**: New household loans turned negative for the first time in 20 years, decreasing by Rmb50 billion, attributed to slower consumption trade-in programs and a weakening property market [10] - **Future Credit Growth Outlook**: Credit growth is expected to moderate from August due to a fading fiscal impulse, which is projected to create a ~0.5 percentage point drag on credit growth for the remainder of the year [3][10] - **Policy Support Measures**: Incremental policy support is anticipated, including a 1% interest subsidy for consumer loans and a supplementary budget of Rmb0.5-1 trillion expected in September/October [4][10] Additional Important Insights - **Impact of Fiscal Policies**: The fiscal-led credit impulse is expected to moderate from August, influenced by the payback of government bond front-loading [7] - **Sectoral Credit Allocation**: While there may be reduced credit support to overcapacity sectors due to anti-involution policies, increased credit allocation is expected for sectors with less oversupply and infrastructure projects [4] - **M2 Growth**: A stronger-than-expected M2 growth of 0.5 percentage points to 8.8% YoY indicates accelerated deployment of government bond proceeds for infrastructure [10] This summary encapsulates the critical insights from the conference call, highlighting the current state and future expectations of credit growth in China, along with the implications of government policies on various sectors.

Investment Rating - The report indicates an overall positive sentiment towards Hong Kong Property with specific stocks rated as Overweight (OW) such as China Resources Land, China Overseas Land, and Swire Properties [15][19]. Core Insights - There is strong interest in Hong Kong Property, particularly among onshore investors seeking stocks with yields greater than 5% and dividend certainty. Swire Properties is highlighted as the most enquired stock, followed by Henderson Land and Hang Lung Properties [1][4]. - In contrast, the sentiment towards Mainland China Property remains cautious, with investors skeptical about the effectiveness of new policy support to revive the housing market. The focus is on tactical trades, with CR Mixc, CR Land, and KE Holdings being the most sought-after names [1][7]. Summary by Sections Hong Kong Property - Investors are primarily interested in stocks yielding over 5%, with Swire Properties (~6% yield) and Henderson Land (~7% yield) being the most attractive options. SHKP is often screened out due to its lower yield [4][5]. - There is a notable shift in investor focus from Mainland China to Hong Kong, with discussions now predominantly centered on Hong Kong Property [1]. Mainland China Property - Investors express low expectations for effective policy support, believing that any new measures will not significantly impact the housing market. The focus remains on companies like CR Mixc, which is viewed as a proxy for improving consumption in China [7][9]. - There is growing interest in small and mid-cap state-owned enterprises (SOEs), with C&D and Greentown China being highlighted as attractive options [7][9].