| Country Garden warns it may default on debt. New Huawei phone triggers 5G speculation. There's a super typhoon heading for Hong Kong. Here's what you need to know today. Chinese developer Country Garden warned that it may default on its debt and raised concerns about staying in business after posting a record first-half loss of almost $7 billion. The company said in a filing that if its financial performance continues to deteriorate, the group might not be able to meet debt obligations. Once the country's biggest developer by sales, Country Garden is in a debt spiral that may be worse than rival Evergrande's, because it has four times as many property projects. China's property slump has been worsening, with new home sales falling the most in a year in July. The government earlier unveiled a further easing of its mortgage policies in an effort to halt the housing slowdown. The surprise launch of a sophisticated Huawei smartphone has created a buzz in China, triggering speculation that the company has managed to achieve 5G capabilities despite US sanctions designed to thwart such advances. Following the appearance of the slim-bezeled Mate 60 Pro with little fanfare, delighted Chinese fans posted screenshots and videos of the gadget's fast wireless performance. Shares in more than a dozen Chinese chip designers, gearmakers and Huawei suppliers surged between 8% and 20%, on hopes that the company had somehow managed to design, manufacture and deploy a 5G chip capable of matching some of the best America has to offer. Some of the biggest local and international banks in Singapore are becoming embroiled in one of the city-state's largest money laundering cases involving more than S$1 billion ($740 million) of assets. According to charge sheets, a number of individuals arrested and charged held funds in the city-state's banks, which had come from unlicensed money lending in China and illegal gambling. The wide roster of banks join property agents, precious metals dealers and golf clubs that have been drawn into this scandal, raising questions about guardrails against illicit money flowing into one of the world's most important financial hubs. Shares in Asia are poised to follow Wall Street gains after US economic reports pointed to slowing growth, adding to bets the Federal Reserve is nearing the end of its tightening cycle. Equity futures for Japan, Australia and Hong Kong all rose after the S&P 500 advanced for a fourth day, extending this week's gains to 2.5%. Treasury yields edged lower across the curve after US GDP rose at a 2.1% annualized pace in the second quarter — lower than the government's previous estimate. In Asia, investors will be focused on China's official purchasing managers index data due Thursday that is forecast to show further weakness in manufacturing. Super Typhoon Saola is heading for Hong Kong, with authorities warning it may raise the second-highest storm warning on Friday, effectively shutting down the city. Saola, which earlier pummeled the northern Philippines, is currently packing winds of some 210 kilometers per hour and will be closest to the city on Friday and Saturday, according to Hong Kong Observatory. The storm has the potential to be the strongest typhoon to hit Hong Kong since Mangkhut battered the city five years ago, leaving roads blocked, buildings damaged and low-lying areas flooded. China's equities are struggling to gain much traction despite efforts by authorities to turn things around with a series of piecemeal measures such as lowering brokerage fees and reportedly telling lenders to lower mortgage rates. It is becoming clearer and clearer that stocks will remain in a downtrend, especially relative to global equities, unless the authorities pull out considerably more stops to revive the nation's economy. China's growth weakened to be slower than overall global growth in June for the first time ever, according to data from Bloomberg tracking gauges that date back to 2006. Little wonder then that the MSCI China Index of shares is sliding back toward the nadir it touched relative to the global gauge in late October 2022 — a level last seen in 2004. Garfield Reynolds is Chief Rates Correspondent for Bloomberg News in Asia, based in Sydney. | 
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