The Dow Jones Industrial Average Sets Another Record Closing High. Fangdd once surged by over 70%! US-listed Chinese real estate stocks rise together. Chinese concept stocks outperform US stocks.

The Dow Jones Industrial Average Sets Another Record Closing High

On October 16th, Eastern Time, all three major US stock indexes closed higher. By the end of the trading day, the Dow Jones Industrial Average rose by 0.79%, to 43,077.7 points, setting another record closing high; the S&P 500 index increased by 0.47%, to 5,842.47 points; the Nasdaq Composite index rose by 0.28%, to 18,367.08 points.

Bank stocks rose collectively, with Morgan Stanley up 6.49%, Citigroup up 2.57%, and Goldman Sachs, Bank of America, and Wells Fargo all rising by more than 1%.

Morgan Stanley reported net revenue of $15.383 billion for the third quarter, compared to $13.273 billion in the same period last year; net profit was $3.188 billion, compared to $2.408 billion in the same period last year; diluted earnings per share were $1.88, compared to $1.38 in the same period last year.

Airline stocks rose across the board, with United Airlines up 12.44%, American Airlines up 7.15%, Delta Air Lines up 6.78%, and Boeing and Southwest Airlines both rising by more than 1%.

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Fangdd once surged by over 70%

US-listed Chinese real estate stocks rise together

On October 16th, Eastern Time, driven by recent policy benefits and market expectations that the upcoming press conference by the State Council Information Office on promoting the stable and healthy development of the real estate market will further release benefits, US-listed real estate stocks generally rose.

Fangdd surged, with the maximum increase reaching 70.65%, closing the day at $1.43, up 55.43%, with a turnover rate as high as 304.89%.In addition to Fangdd, a host of US-listed Chinese real estate stocks rose together. XCHANGE TEC increased by 22.79%, Xinyuan Real Estate rose by 6.85%, and Beike increased by 4.58%.

CMB Research published a research report stating that the "stabilization after stopping the decline" goal for the real estate market at the Central Political Bureau meeting in September was distinctly positive, hence the policy space has been gradually unlocked accordingly. The past two weeks have been a period of intense policy release for the real estate sector. On October 12th, at a press conference of the Ministry of Finance, a package of additional policies targeting the real estate industry was introduced, including allowing special bonds to be used for land acquisition and existing commercial housing, and optimizing tax support. Looking at the recent online signing data (September 30th - October 13th), the average weekly online signing area for new houses has significantly improved compared to the annual average level; the average weekly online signing area for second-hand houses has been somewhat repaired after weakening from August to the first half of September, basically returning to a relatively high level around 517. In the first-tier cities, Guangzhou's new houses and Shenzhen's second-hand houses have shown significant improvements. Additionally, considering that residential subscriptions to online signing usually take about two weeks, the subscription data during the National Day holiday is expected to gradually reflect in the online signing data in the middle and late part of this month, and we will closely monitor the quality and sustainability of sales improvements.

The State Council Information Office will hold a press conference at 10 am on October 17th, at which the Minister of Housing and Urban-Rural Development, Ni Hong, along with heads of the Ministry of Finance, Ministry of Natural Resources, People's Bank of China, and the China Banking and Insurance Regulatory Commission, will jointly introduce the situation regarding the promotion of stable and healthy development of the real estate market.

The market generally looks favorably upon this real estate press conference, believing it will bring positive policy signals and new development opportunities for the real estate market.

Chinese concept stocks outperform US stocks.

On October 16th, Eastern US time, most popular Chinese concept stocks rose. The NASDAQ Golden Dragon China Index once surged by 2.18%, and increased by 0.93% for the day, outperforming the three major US stock indices.

Century Internet rose by 9.88%, Dingdong Maicai increased by 6.55%, and Qudian increased by 6.21%, leading the NASDAQ Golden Dragon China Index constituent stocks. ZTO Express, iQIYI, and Ctrip Group increased by more than 2%; on the downside, China Medical System fell by 11.20%, Youjia Insurance fell by 9.12%, and Youdao fell by 6.91%, leading the decline in the NASDAQ Golden Dragon China Index constituent stocks. Miniso and Jinko Energy fell by more than 2%, and NIO and Tencent Music fell by more than 1%.