Chinese money and credit data was significantly weaker than anticipated in July. Aggregate financing fell to CNY 1.06 trillion from June’s CNY 3.7 trillion, missing expectations of a CNY 1.7 trillion increase. Similarly, M0, M1,…
Dear client, In addition to this abridged Strategy Report, we are sending a report written by Arthur Budaghyan, Chief Strategist of BCA’s Emerging Market Investment service. Arthur shares his thoughts on the future of Chinese…
Chinese producer prices accelerated to 9.0% y/y in July, above expectations PPI would remain at 8.8%. Similarly, core CPI rose to a 18-month high of 1.3% y/y from 0.9%. Policymakers are unlikely to respond to signs of price…
China’s policymakers are responding to their domestic economic and political constraints, which should point to more accommodative policies over the coming 12 months. Our Geopolitical Strategy’s key view for 2021 held that…
Highlights China’s July Politburo meeting signaled that policy is unlikely to be overtightened. The Biden administration is likely to pass a bipartisan infrastructure deal – as well as a large spending bill by Christmas.…
Highlights The rapid spread of the COVID-19 delta variant in Asia will re-focus precious metals markets anew on the possibility of another round of lockdowns and the implications for demand, particularly in Greater China and India,…
Highlights Chinese authorities’ regulatory crackdown on new economy companies reflects new socio-political and economic shifts in China. Hence, this regulatory crackdown is not transitory. Investors in Chinese TMT/new economy…
Chinese President Xi Jinping’s de-carbonization drive is well telegraphed. Last year, he announced that carbon emissions will peak by 2030 and that carbon neutrality will be achieved by 2060. Unsurprisingly, the steel industry,…
The performance of Chinese stocks last month was almost a mirror image from a year ago. Chinese stocks went from being the best performers among global asset classes in July 2020 to the worst in the same month this year. This…