Daily Brief China: Iron Ore, Hang Seng Index, Longfor Properties and more

In today’s briefing:

[IO Technicals 2025/29] Near Term Bullish Trend to Persist
Hong Kong Single Stock Options Weekly (July 14 – 18): HSI at Fresh Highs But Option Volumes Lag
Lucror Analytics – Morning Views Asia

[IO Technicals 2025/29] Near Term Bullish Trend to Persist

Iron ore prices topped $100/ton as Beijing’s push on steel overcapacity and hopes of property support lifted sentiment, alongside tighter inventories fuelling restocking expectations.
Rio Tinto’s early Simandou shipments from November sparked fresh interest, though RBC sees output reaching just 12 million tons by 2026, ramping up slowly.
Prices are holding firm above key moving averages, pointing to continued upward momentum, while the MACD above its signal line reinforces the bullish trend.

HSI continued its rally, breaking out to the highest level since early 2022.
Breadth was solid and all sectors finished the week higher, led by standout moves in Health Care.
Call volumes were underwhelming given the breakout to new highs.

In today’s Morning Views publication we comment on developments of the following high yield issuers: Longfor Group, Adani Ports, Adani Green Energy
UST yields were broadly stable yesterday. The yield on the 2Y UST rose 1 bp to 3.91%, while the yield on the 10Y UST was unchanged at 4.45%. Equities rallied, following the release of strong retail sales data. The S&P 500 rose 0.5% to a new high of 6,297, while the Nasdaq was up 0.7% at 20,886.
Several Fed officials spoke yesterday. New York Fed President John Williams said it is “entirely appropriate” to maintain the current modestly restrictive monetary policy stance, as he expects inflation to increase in the coming months. Atlanta Fed President Raphael Bostic also said that he still supports holding interest rates steady, stating that inflation may be at an “inflection point” after several months of soft price increases.

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