Tensions escalate between Beijing and New Delhi. Chinese banks flash warning signs. And huge amounts of savings in Australia may drive an eventual recovery. Here are some of the things people in markets are talking about today. India banned over a hundred Chinese apps including versions of Tencent's popular game PUBG, search engine leader Baidu, and online payments giant Ant Group's Alipay as tensions escalated on the nations' disputed border. The 118 blocked apps are "prejudicial to sovereignty and integrity of India" as well as "security and public order," the country's Ministry of Electronics and Information Technology said in a statement Wednesday. "This move will safeguard the interests" of Indian mobile and internet users, it said.The late evening ban came as India upped the ante in its feud with China after multiple rounds of high-level military talks failed to end the months-long standoff. Asian stocks looked set to follow their U.S. peers higher Thursday where shares continued to set fresh records despite a setback for some tech giants. The dollar advanced. Futures rose in Japan and Australia, though dipped in Hong Kong. The S&P 500 Index gained 1.5% to hit another all-time high with utilities and materials stocks leading the charge and technology shares lagging. The dollar gained the most in almost two weeks as the euro slid further below $1.20, a level it breached for the first time in more than two years Tuesday. Oil fell with precious metals and Treasury yields retreated. Elsewhere, 10-year bunds rose along with most of their sovereign peers across Europe as Germany took in 33 billion euros ($39 billion) of orders for its first green bonds. Warning signs are flashing for China's $45 trillion banking industry, just when Beijing most needs its help to keep the economy on its recovery path. Enlisted to ease the financial hardship of millions of people and businesses hurt by the pandemic, Chinese banks are under increasing stress. Bad debt has hit a record and capital buffers are eroding. Bank executives and analysts predict the damage is likely to continue in the second half of this year. The strain risks hamstringing Beijing's efforts to prop up the economy, raising pressure on the central bank to follow up with deeper stimulus. It's also of global importance, with behemoths such as China Construction Bank and Industrial & Commercial Bank of China — the world's largest lender by assets — on the global "too-big-to-fail" list. Australians have salted away cash they've been unable to spend on leisure activities due to the Covid lockdown and paid down debt, leaving them well placed to drive a recovery once the virus is contained. The nation's savings ratio soared to a 46-year high of 19.8% in the three months through June and would've stood at almost 25% if pension-fund withdrawals had been included. Data show spending on activities people couldn't engage in because of restrictions tumbled 30.5% last quarter. Those still open for business advanced 1.2%, suggesting an appetite to consume remains. Household consumption accounts for 56% of Australia's economy and last quarter it tumbled 12.1%, driven by a collapse in spending on transport — such as airlines — and hotels, cafes and restaurants. In his search for the next Kweichow Moutai, Zhu Liang discovered a cocktail maker that has helped his flagship fund post a 72% return this year. The stock in question is Shanghai Bairun Investment Holding Group, which makes pre-mixed cocktails, fragrances as well as flavors. The stock has more than doubled this year after nearly tripling in 2019 when Zhu, the chief investment officer at Shanghai Danyi Investment Management, first bought it. Zhu's firm has a pool of 80 to 100 stocks to watch closely, with about 800 million yuan ($117 million) of assets under management. The flagship fund has returned 185% since its inception in January 2018, according to fund tracker Shenzhen PaiPaiWang Investment & Management. Read more about Zhu's strategy here. What We've Been ReadingThis is what's caught our eye over the past 24 hours: And finally, here's what Cormac's interested in this morningThe outperformance of Hong Kong's local shares is a positive sign for investor sentiment in the beleaguered city. The MSCI Hong Kong Index has been beating the Hang Seng Index in recent times. In fact the gauge of shares exposed to the local economy has risen to its highest in about a year against its better-known rival, which includes Hong Kong-listed mainland stocks. While Hong Kong's role in ongoing U.S.-China tensions continues to weigh in the minds of international investors, their Chinese counterparts are more and more active.  Chinese traders bought Hong Kong shares for a ninth consecutive session Tuesday, via Stock Connect, according to data compiled by Bloomberg. And mainland Chinese are returning to Hong Kong's real estate market in a big way, bolstered by China's support for the city's status as a financial hub, according to a report released Wednesday by Colliers International. There has also been some relief on the coronavirus front, with reports of a further relaxation of social-distancing measures as cases drop off from record highs. The news hasn't all been good — retail sales figures out Tuesday marked an 18th straight monthly decline — but the upward direction of local stocks should be a positive sign for broader investor sentiment toward the city. Cormac Mullen is a Cross-Asset reporter and editor for Bloomberg News in Tokyo. | 
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