Matthews Asia June 2016 Country Updates: China, India, Japan, Korea & Southeast Asia

Matthews Asia June 2016 Country Updates: China, India, Japan, Korea & Southeast Asia

China/Hong Kong

In June, the MSCI China Index returned 1.11%. Hong Kong's Hang Seng Index returned 1.43% (1.56% in U.S. dollar terms) and China's domestic CSI300, the A share index, returned 0.16% (-0.94% in U.S. dollar terms). China's currency, the renminbi, ended the month at 6.65 against the U.S. dollar. The real effective exchange rate was down 4% year-to-date through the end of May, but was up by 50% from June 2005, when China began to reform its exchange rate mechanism. In the first five months of 2016, new home sales, on a square meter-basis, rose 34.2% year-on-year, after rising 6.9% for the full year of...