Beijing Eases Home-Buying Curbs to Boost Property Market | The China Show | 8/10/2026

Summary

The China Show covers Beijing's latest housing easing measures, extremely soft Chinese inflation data that extended a bond rally, and ByteDance's ambitious plan for a massive AI model without distillation. Citi's Beata Manthey discusses overweight positions in US, China and Japan with a tech-favoring sector tilt, while reporters highlight a revival in Taiwan and Japan tech supply chains and a structural shift into China's domestic chipmakers. On the property front, Bloomberg Intelligence contrasts Hong Kong's healthier fundamentals with mainland China's persistent inventory overhang.

• Beijing relaxes home-purchase requirements for non-residents, but high inventory levels temper expectations for a housing rebound.
• ByteDance reportedly won't use distillation for its planned 5-trillion-parameter AI model, signaling a long-term indigenous innovation strategy.
• Citi's Beata Manthey is overweight US, China, Japan and the tech sector, underweight communication services, and swapped Korea overweight for China within EM.
• China CPI prints at 0.5% vs 0.8% expected, core stable but soft domestic demand keeps bond yields falling near 1.7%.
• China's open-source AI ecosystem is lowering token costs, benefiting software industry margins and driving a slow grind higher in tech stocks.
• Taiwan and Japan's AI-related supply chain rallies on sustainable hyperscaler CapEx and Nvidia's data-center power investments, while Korea lags.
• China's push for tech self-sufficiency leads to explosive earnings for domestic chipmakers and a structural rotation into the STAR 50 index.
• Hong Kong property is better positioned than mainland peers due to low supply, higher rental yields, and currency diversification appeal.