asian equities were mixed overnight on light volumes and little marketmoving news as mainland china underperformed country garden holdings a developer focused on lower tier cities was the most traded stock in hong kong overnight and declined nearly 8 the developer’s presales have been underperforming in recent months likely following a bounce on relaxed down payment requirements in certain regions lower tier cities as a result the developer is facing serious liquidity issues going into the second half nonetheless our expert contacts believe that a restructuring is in order which should receive government support meanwhile greenland holdings another developer recently defaulted again on its alreadyrestructured bonds presale pain in real estate is another catalyst for policymakers to get moving in speaking with an economist from one of the largest investment banks in china he said that real estate comes before everything in china’s recovery government support and the lifting of currently strict down payment requirements and other restrictions is paramount to power china’s recovery further we believe this broadscale policy change is coming given recent stress and the fact that such conditions have been relaxed on a regional temporary basis across the country nonetheless as country gardens challenges show lower tier cities will require more robust policy support than higher tier cities alibaba jdcom and tripcom were up overnight leading internet stocks higher in preparation of earnings season which will kick off this week alibaba will report q2 on thursday and jd and tencent will report next wednesday positive surprises for these consumeroriented companies may catch many investors off guard residents of hebei province are dealing with the fallout from massive flooding that has rendered multiple roads and bridges unusable as well as disrupted electricity supply government messaging overnight was mostly focused on disaster relief taking a break from economic policy discussions to deal with this emergency the south china morning post scmp is reporting that israel’s netanyahu is seeking beijing’s help in restarting stalled normalization negotiations with saudi arabia scmp says that netanyahu may visit beijing later this year this could be a watershed moment for uschina relations and china’s diplomatic efforts across the globe if china can resolve disputes between two us allies that could bolster its diplomatic standing the hang seng and hang seng tech indexes diverged to close 001 and 005 respectively on volume that decreased 31 from friday mainland investors bought a net 566 million worth of hong kong stocks overnight via southbound stock connect shanghai shenzhen and the star board all closed lower by 056 066 and 071 respectively on volume that decreased 16 from friday foreign investors sold a net 319 million worth of mainland stocks overnight via southbound stock connect