Key Takeaways
- China Evergrande Group (3333.HK) is slated for delisting from the Hong Kong Stock Exchange on August 25, following its failure to meet resumption requirements and a significantly larger debt burden of approximately HK$350 billion ($45 billion).
- U.S. headline Consumer Price Index (CPI) for July is forecast to rise to 2.8% year-over-year, up from 2.7%, with economists largely attributing the increase to tariff-induced price pressures.
- Sugar prices are anticipated to extend their upward trend for the longest streak in five months, influenced by a favorable crop outlook in Brazil, a major global producer. [Headline, 14]
- India and China are set to resume direct flights as early as next month, a move aimed at improving bilateral relations after a suspension since early 2020 due to the pandemic and border tensions.
China Evergrande Group Faces Delisting in Hong Kong
China Evergrande Group (3333.HK) is set to be delisted from the Hong Kong Stock Exchange on August 25, with its last trading day scheduled for August 22. This marks a critical juncture for the embattled property developer, which failed to meet the necessary resumption requirements after its shares were suspended following a liquidation order in January 2024. The company's debt burden has been revealed to be significantly larger than previously estimated, totaling approximately HK$350 billion ($45 billion) across 187 debt claims. Liquidators have indicated that a holistic restructuring of the real estate giant is now considered out of reach given the immense scale of its obligations. Evergrande, once China's largest real estate firm, defaulted in 2021, becoming a symbol of the prolonged crisis in the country's property market.
U.S. Inflation Expected to Rise, Driven by Tariffs
Economists are closely watching the upcoming July Consumer Price Index (CPI) report, which is forecast to show a rise in headline inflation. The annual headline CPI is expected to increase to 2.8% year-over-year in July, up from 2.7% in the previous month. This anticipated uptick is primarily attributed to tariff-induced price pressures becoming more apparent in the U.S. economy. Core CPI, which excludes volatile food and energy prices, is also projected to see a rise, reaching 3.0% year-over-year. Experts suggest that the full impact of tariffs, with the overall U.S. tariff rate on goods currently around 15%, has yet to be entirely felt by consumers. A potential rise in services inflation could signal a stickier inflation problem, impacting both bond and stock markets.
Sugar Prices Poised for Longest Upward Streak
Global sugar markets are anticipating a significant trend as sugar prices are expected to rise for their longest streak in five months. [Headline] This upward momentum is primarily driven by a favorable crop outlook in Brazil, which stands as the world's largest producer and exporter of sugar. [Headline, 14] While some earlier reports in late 2024 indicated concerns over Brazil's crop conditions contributing to price increases, the latest outlook points to a positive harvest influencing the current streak.
India and China Set to Resume Direct Flights
In a development signaling potential improvements in bilateral relations, India and China are preparing to resume direct flight services as early as next month. [Headline, 6, 8] Direct flights between the two nations have been suspended since early 2020, following the onset of the COVID-19 pandemic and subsequent border tensions. The resumption of these flights is seen as a move to restore normalcy and foster a better political relationship between the two populous countries. The Indian government has reportedly instructed airlines to be ready to operate flights to China on short notice, with a formal announcement potentially coinciding with the Shanghai Cooperation Organisation summit later in August. Both countries had agreed in principle to restart flights in January 2025 and committed to expediting the process in June 2025.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.