there is shenzhen. a little better since june of last year.ades at 46 times earning, almost three times the level of shanghai. why? because those 1800 companies are the shenzhen composite are tech companies, new economy stocks that are attractive to punters. of you canivergence see over the last three months, the two indices tracking each other but more recently, the breakout has happened. shenzhen outperforming shanghai by quite a bit over the last three months. shanghai is down. the next chart shows you the record level over historical basis. i drew it back to the year 2000. this is the premium, if you want of how it -- gap shenzhen is outperforming shanghai. on the far right is the record level -- record high level. angie: retail investors clearly making it -- making a play. stephen: 90% of the shenzhen market right now our domestic punters. if this hong kong shenzhen connect, when it does happen, it will broaden the investor base, foreign investors will be able to come in. and you will be able to see a more sophisticated investor. no offic

--shenzhen. 22.3%.these cities have seen sizable games -- gains. is the cheapning credit we saw in june often as we saw ingdp the second quarter, but what it does is goes into the property market, and that is what we have seen. property sales in the first half were up 42.1%. that is one half of the story. the other half is that that pace has slowed. first quarter sales were up 54.1%, so there is some heat coming out as those curves take hold in places like shanghai and shenzhen. the other aspect is to the emphasis to whittle off excess territory. that is -- inventory. cheap credit is starting to filter into the property market on a wider basis. angie: let's see how investors are reacting. let's get it back to david. property prices out, and what are the market saying? outd: it is hard to make all the data, so many numbers that have to be considered. a look at the shanghai composite, down as much as a third of 1%. i would not call it a stark reaction. you are looking at the developers, real estate down a

shenzhen also down 36% since last year's peak, but it trades at 46 times earnings.t is nearly three times earnings over shanghai. you are seeing that is where the prop has been built into. retail hunters like the government's push to new services of the economy, biotech, health care, and the like. a lot of the 1800 companies that are in the shenzhen composite index are profitable, smaller, new economy companies. anna: we have seen how the stoxx it can in the region how boost equity. how will that likely affect trading? stephen: that is the million-dollar question in hong kong. it has been several times delayed. no official data has been stated, but a local newspaper did report quoting the securities regulator in beijing saying it would happen this year. saying they believe have it on good record that it will happen within three weeks. this could institutionalize, if you want to call it that, the investor base into shenzhen rather than just the mom-and-pop retail market. investors make up 80%-90% of those investing in shenzhen. anna: it could be a game changer. compa

at one, down 15 as soon as the shenzhen exchange started questioning it. a lot more regulation and scrutiny of possible stock manipulation. into speculators, and i am not saying that is happening here, but there is a lot more scrutiny of this share price manipulation or perception of it. rishaad: thank you very much indeed. we're going to have a look at manila grabbing the headlines. they are poised to challenge macao as asia's biggest gambling hub. they are opening a new casino that could cost up to $4 billion. this could be an absolutely massive project. has linda: it is big. twice the market value of -- the man behind it owns almost 70% of the company. his massive investment shows his confidence in the philippine game market. this project likely to lead to more such projects. he is already exploring locations right now. here is what we can expect from the casino resort. 100 meterng tables, dancing water fountain, also an indoor beach. i don't know where you will get the sun. he wants to take chinese gamblers away from a cow and other parts of -- from ma

did they lineup shenzhen metro to try to offset this?o kind of wiggle out of the grasp. one of the things it wants to do is to sell a stake to a third party and one of those third parties is shenzhen metro. $6.9 primed to sell billion shares to shenzhen. groups do not agree with this. number one and number two biggest shareholders in vanke hold something like 39.9%. they have a quite large stake. angie: they called for extraordinary shareholders meeting. they want to get rid of 10 of the 11 board members. >> the majority of the board members. one of the units in the consortium basically called for --edium asking to discuss angie: the network? -- didi that work? >> no. stakeholders with more than 10% shares in vanke have the right to call an egm even know the board members rejected it. we have not heard a comeback yet but this is the current session vanke is under and it continues to find ways to move forward. it is a life or death matter. angie: that is a nuclear option. let's see if they get what they want in the extraordinary situation

because the shenzhen stock exchange launched they probe.regulatory interest in potential manipulation of the shares and speculation. rishaad: thank you. we have to take a break. , but may be trouble ahead our next guest is sounding a note of warning. find out why next. ♪ the latest business flash headlines. top three bidders for yahoo! .ssets yahoo! expected to hold a further selection round. india giving state back banks a , three pointtion $4 billion to contain risks. three point $4 billion to contain risks. the injection is 6% lower than last year. fox news chief said to be an negotiations to leave his job following allegations of sexual harassment. ued by of former anchor, saying she was fired for rejecting his sexual advances. wealth management by uh and set record highs. wealth management evaluations are now at record highs. what is the thrust of your findings? >> we are showing the overall development post financial crisis. wealth management valuations 37% of thed a peak, sum of parts. is up from 16% a decade back. there are still su

there is this stock sale lineup with shenzhen metro. movess is one of the forvanke to reduce the groep. vranke tothe moves by reduce the grip. it would make shanghai metro group the biggest shareholder. some groups do not approve of the strategy. these are the hong kong listed shares. rose.ng kong listed once they also gained on thursday, the last day before the friday holiday. continues because of the discussion to get rid of 10 of the 11 board members. vanke has rejected this proposal. the pressure is still on. yvonne: the plot thickens. let's check on some other stories. after a dealment collapses. shares fell as much as 29% when trading resumed this morning. west china cement has lost almost half of its value over the last two trading sessions combined. an increasing number of economists predict chinese banks will receive a government bailout. nine of 15 responded in the latest bloomberg survey to say they expect the mayo. move.ect the chinese lender's are grappling with the growing mountain of debt after years of flooding the marke

theyou expecting shenzhen-hong kong connect to make a difference this year?hong kong connection, mostly down before that announcement. right now, people are positioning their money for the shenzhen-hong kong connection. tell me something, how much can we learn from the shanghai connect and can it be applied? >> we should start to position now. is also one potential catalyst waiting for china to press the button. rishaad: not that button, but the other one. does the rally have legs? >> i think u.s. valuations are getting pricey, but the u.s. economy is still in much better shape than europe or japan, so relatively speaking, the housing market, the labor market, it looks like people are chasing for yield. that is why we have been positioning in gold, high-yield stocks. it makes sense and a low yield environment. rishaad: something we have been saying for a while. thank you for that. beerxt, japan's suntory says it is still not enough to push it overseas. we hear from the ceo. ♪ is "trending business". says theuntory beer central bank has failed to stimulate the

right, shenzhen and shanghai coming online in 28 minutes.trading in hong kong, establishment day. we are having a look at reaction to that number out of china. aidi: it is something of proxy in absence of the chinese market being open. very sensitive to happenings in the chinese economy, not much movement, a bit of an uptick for the aussie dollar. it is up about 3% in june despite that brexit selloff in the last few days. aussie dollar holding steady, as is the chinese manufacturing gauge. take a look at the yen, starting to strengthen again in the friday session. 102, some stability and risk by yesterday, but we did have that survey that was surprisingly up beat given it covered a time of in or miss, but inflation numbers showing pressures continue to travel sideways. thet of questions over what boj can do next. broaderok at the markets, singapore, malaysia, and taiwan. very strong rally coming through, a recovery rally being extended. the nikkei 225 up by 7/10 of 1%. austrian shares close to session highs ahead of the elections tomorrow. k

voters will elect members of the upper house of parliament and the stakes are high for prime minister shenzhenby. -- shinzo abe. we have this report from tokyo. stephen: two thirds is a big number here. so it government can win, thea two thirds majority, first constitutional change in seven decades becomes possible. >> there has been no change at all for seven years but have always wide to revive a constitution. so there is a very strong baggage attached. is japan'se baggage constitution is pacifist. by a navy but by law it can only defend the homeland. the army cannot fight abroad without constitutional change. the prime minister is out campaigning. he does not mention wanting to change the constitution but his opponents say that is the intention. the subtext of this election is whether japan should become more assertive area that is becoming a theme on this now as economic powers shift and uncertainty ones, nationalism is rising the agenda. .oters decide on sunday and some good news today. employers added 287,000 jobs in june in the u.s. ticked up slightly due to the thousands of recent grad

shenzhen isaking, taking it worse than shanghai. get me back in shot.re looking at construction stocks taking the brunt at the moment. down by about 1% at the moment. angie: thanks, david. coming up, we will talk more about the coup attempt in turkey and the implications on middle east markets. cio joins us next. ♪ ?c+sv 90ie: 2:30 in sydney with minutes left of trading. every sector is leading except mining. top stories on "bloomberg markets middle east," the lira has regained half of its losses following a failed military coup. says 6000 have been arrested with more than 100 plotters and 100 civilians killed. gas and oil are flowing unhindered through turkish ports. yousef: saudi arabia is planning to expand crude export capacity with a shipping complex on the east coast. the energy mnister says the king needs a fleet that will match capabilities, with aramco requiring more tankers to meet demand. oil prices have rebounded 70% from this year's 12 year low. opec expects demands to rise. angie: exxon has outbid oil surge for a company that controls natu

seatct to the meeting,-- fmo seat quite a lot of weakness on the shanghai market yesterday and also shenzhen more regulation about wealth management products, so a lot of financials as was predicted in the futures in hong kong. the hang seng is up by half of 1%. all those energy players coming under pressure. crude is trading that three-month low. the nikkei under significant pressure, a surprise to the upside yesterday from shinzo abe . the ball is in the boj's court. we are seeing quite a bit of weakness from export players. the nikkei off by 1.1%. in australia, upside particular he from gold players. retreating from record highs. the philippines opened pretty flat. some movers we have been watching, big earnings day, nintendo after the bell, down 5% in tokyo. wasfirst quarterly loss wider than expected, but it does not include that recent rally and the recent increase in profit since pokemon go was launch. samsung down 2% after results. alps electric is one of the best performers in the region. first-quarter operating profit down 62%. it was much better than what the market was looking fo

cory: companies in shanghai and the shenzhen? >> yes.enture-backed tech companies could only go public in the u.s. largely because the domestic market requirements are different. you have to be profitable. now, i think on the u.s. -- probably the best tech companies in general go public in the u.s. there are some dynamics that are changing up a little bit, but it typically is very choppy. we had probably 11 chinese company ipo's in the u.s. in 2015. the first six months of this year was zero until one of our early investments went public. corey public.cory: 20 ucs quote >> what you see is that the company you are shorting -- a lot of them are not growing as fast and they resort to certain tactics. we safety engineer on paper what is interesting growth. the real story is the growth of the internet. internet enabled businesses in china. alibaba is 1000 x over a 10-year period. both played a new economy w here internet allows you to bua big consumer business in a shorter period of time. cory: where some of these names are new, how do you su

saying that we are in preliminary discussions with china investment securities brokerage based in shenzhenscuss business cooperation. sources are telling bloomberg a merger are talking which would combine assets of about $28 billion usd. it's an interesting one, because the chinese parent, which owns china investment securities, has been making their investment companies, financial companies -- they merge them with other securities, took china galaxy securities, trying to make these stronger core financial giants. yvonne: is this a good fit? cicc has a bit of -- stephen: in the brokerage space, there has been a lot of competition, a lot of companies of china's equity markets exploding. the first shanghai securities calls this a good deal for cicc. as a brokerage , they were number one in china. china investment securities -- what they do, they combine a different clientele. cicc, which tends to have more high-value work clients -- they have the big corporate clients, whereas china investment securities is more mass-market. they have 160 bridges across china, serving the needs of ci has jus

if you look at the shenzhen , profits are contracting 12%. investment spending is slowing.lot of pressure. confidence is the lowest it has been. fades, i'm afraid the china data will deteriorate. anna: should the chinese be worried about the trade environment given brexit? >> they should. brexit is another piece of uncertainty. there has been no economic recovery until this one. it's not just trade. anna: chris watley, ceo and chief market strategist of longview economics. up next come is a cut coming? boe governor mark carney signals a move may be on the table. more on the brexit fallout. we will look at how mark carney defended the things he said going into the referendum in the u.k. all of that to come as london wakes up. this is bloomberg. ♪ signaling stimulus, mark carney suggests action is on the way following the brexit devote. -- vote. will likely be required over the summer. it, the justice minister sets out his pitch to be the next prime minister this morning. then's economy shows in of lackluster month going even further away from the boj's target. is it running

rishaad: are we hearing anything about when we might get this shenzhen connect?e delay is about. it seems like it is mostly on the chinese side. when it is announced, it will be less than three months. may be ready as soon as possible to go and trade. rishaad: thank you very much indeed. the hang seng flat. it has moved below the gain line. generally, asia stocks giving up gains at the start of the session. that is it for this monday edition of "trending business". andyou will be a long updating you with the big stories of the day on "asia edge." that is next. ♪ >> if you are a telecommuter, today never look so good to do that. it's the beginning of the agent trading day. that is a live look across the harbor in kowloon. we are live and this is "asia edge." ♪ i'm angie lau. the top stories this hour. stimulus.further boj nintendo big losers. to a low notunge seen since 1989 as it warns of the financial impact of pokemon go. continued bites from apple's margaret -- market share. i'm juliette sally, keeping an eye on the market. investors trying to keep the risk on

i can shave the ownership structure of the shenzhen-based china investment securities.ercent owned by the shoe agent investment. but they are a unit of the sovereign wealth fund the china. owns 28.4%. there is some interconnection. coming up, time for a turnaround. find out whether ubs believes we may see signs of economic recovery in the second half of this year. the latest first word headlines. saudi arabia was hit by three suicide bombings on monday. one was at the u.s. consulate extending a wave of attacks that his killed scores of people over the past two weeks. four people died when another bomber killed himself outside the profits mosque in medina. two more attackers are themselves up in -- blew themselves up in an eastern city. q1 loop says -- hu wan lu says he was convicted -- he is the latest high-profile target of an it corruption campaign that has ensnared more than 100,000 official since she jinping came to power. ping can to jin power. vietnam says that it infringes ,n its sovereignty understandings made between the two countries and it violates internatio

property prices climbed 42.1% in the first half, still strong, but at a slower pace after shanghai and shenzhenoverheated market. the question is whether that will continue and if they will be able to keep a control on that while maintaining that nascent recovery. we will also get the latest from turkey as thousands were injured, hundreds killed, and thousands more arrested as turkey's erdogan says it is a gift from god. it is having an impact on oil. all this more, "trending business" is next. ♪ ♪ it is monday, the 18th of july. i am angie lau. this is "trending business". ♪ angie: we will be live istanbul, singapore, and sydney. the turkish lira looking like this. regained half its plunge from friday when the attempt to -- to erdogan president topple president erdogan began.

i've put it to you, judy, the free movement of people within europe, the shenzhen agreement, you know it is. in ten seconds i'm going to tell you it's finished, it's gone. >> i totally agree with you. it's gone, it used to be a pillar of the eu. one by one, these pillars are being pulled out from under us. stuart: what a story. judy, thank you for joining us with your expertise. >> thank you. stuart: check the markets, you thought they would be down, but now most are in the green. and donald trump quick response to those attacks last night. and he postponed his official vice-presidential announcement. he stand by his temporary muslim immigration ban. more varney in a moment. what if one piece of kale could protect you from diabetes? what if one sit-up could prevent heart disease? one. wishful thinking, right? but there is one step you can take to help prevent another serious disease. pneumococcal pneumonia. if you are 50 or older, one dose of the prevnar 13® vaccine can help protect you from pneumococcal pneumonia, an illness that can cause coughing, chest pain, difficulty breathing,