Executive Summary The Excess Return Of Corporate Bonds Is Driven By Corporate Profits Given that a sustainable business cycle acceleration in China is unlikely in the short term, onshore government bond yields will likely…
Chinese authorities have asked state-owned firms and banks to closely examine their exposure to Ant Group and report their findings as soon as possible. The move highlights that the regulatory clampdown on Chinese companies…
China’s 70-city monthly average new home prices were broadly flat in January at -0.04% m/m following four consecutive months of falling prices. The underlying data show a bifurcation whereby new home prices in Tier 1 and…
We are booking profits on our short Baht/ long U.S. dollar trade instituted on March 25, 2021. The position has generated a 1.6% profit, including carry. We recommended to short the baht against the US dollar a year ago due to a…
Executive Summary Bull Markets In Malaysian Stocks Are Fully Dependent On Profit Growth The conditions for a major rally/outperformance in Malaysian equities are absent. Profits have been the primary driver of Malaysian…
Chinese producer and consumer price inflation eased in January and fell below consensus estimates. CPI inflation slowed from 1.5% y/y to 0.9% y/y, slightly lower than the 1.0% expected. Similarly, at 9.1% y/y PPI inflation is…
Executive Summary China Needs To Create RMB35 Trillion In Credit In 2022 The pace of credit creation in January increased sharply over December. However, the jump was less than meets the eye compared with previous easing…
BCA Research’s China Investment Strategy service sees four significant risks to turning bullish towards Chinese domestic stocks (in both absolute and relative terms) in the next 6 to 12 months. A subdued…
Executive Summary Chinese Onshore Stock Prices And Earnings Are Set To Deteriorate Macro fundamentals indicate that for the time being there is no basis to overweight Chinese onshore stocks (in both absolute terms and…
The Caixin PMI suggests that Chinese economic activity stagnated in January. The Composite PMI declined by 2.9 points to 50.1 – a hair above the boom-bust line separating contraction from expansion. The services PMI…