Dear Client, Next week I will be hosting a series of Roundtable discussions with BCA’s clients in both Europe and Asia. Our next report published on April 28th will be a recap of my observations from these meetings. Best regards…
China’s trade surplus contracted significantly in March, falling to $13.8 billion from $37.8 billion. The narrower surplus reflects both a deceleration in exports and an acceleration in imports. Exports were weaker than…
China’s credit trends continue to point to a winding down of last year’s massive stimulus. Although new loans of CNY 2.7 trillion in March exceeded the CNY 2.3 trillion anticipated by the consensus, the annual growth…
Chinese stocks are increasingly unattractive amid both policy tightening (see The Numbers) and a regulatory clampdown targeting real estate, banking, and tech. Regarding the latter, an anti-monopoly probe on e-commerce giant…
China’s Producer Price Index jumped from 1.7% y/y to 4.4% y/y in March, above consensus expectations of 3.6% y/y. The acceleration is in line with the trend in recent months, raising the risk that the PBoC will respond…
As expected, the Reserve Bank of India kept the benchmark repurchase rate unchanged at 4% at its Wednesday meeting. Nonetheless, the RBI managed to surprise investors by announcing plans to purchase up to one trillion rupees ($14…
Feature The selloff in Chinese stocks since mid-February reflects a rollover in earnings growth and multiples. Lofty valuations in Chinese equities driven by last year’s massive stimulus means that stock prices are vulnerable to any…
Highlights A significant portion of Taiwanese equity outperformance is attributed to tech stocks and Taiwan Semiconductor Manufacturing Company (TSMC). Global semiconductor stocks are in a structural bull market. TSMC holds…
China’s Caixin PMI showed an expansion in economic activity in March, in line with the message from the official PMI released last week. The Caixin Services PMI rebounded to 54.3 from 51.5, exceeding expectations of a 52.1…
Highlights Global manufacturing activity will soon peak due to growing costs and China’s policy tightening. This process will allow the dollar’s rebound to continue. EUR/USD’s correction will run further. This…