BCA Research's China Investment Strategy service concludes that small and medium caps will likely continue to outperform large-cap stocks this year. Chinese small and medium-cap (SMID-cap) stocks have outperformed large-…
Feature Chart 1Chinese Offshore Stocks Tumbled Amid Regulatory Crackdowns Relative to the global equity index, onshore and offshore Chinese stocks have fallen by 18% and 32%, respectively, since their peaks in mid-February (…
China's trade balance widened unexpectedly in August, rising to USD 58.3 billion from July's USD 56.6 billion. Both exports and imports surprised to the upside and reached all-time highs. Exports accelerated to 25.6% y/y…
Highlights An Iran crisis is imminent. We still think a US-Iran détente is possible but our conviction is lower until Biden makes a successful show of force. Oil prices will be volatile. Fiscal drag is a risk to the cyclical…
According to BCA Research's Emerging Markets Strategy service, any near-term bounce in Chinese platform companies from oversold levels is likely to be short-lived. The Chinese government's approach toward platform…
Highlights The US government issued its first-ever water-shortage declaration for the Colorado River basin in August, due to historically low water levels at the major reservoirs fed by the river (Chart of the Week). The drought…
Highlights Regulatory changes affecting Chinese platform companies are structural – rather than transitory – in nature. These companies might become quasi-SOEs and could be used by the government to achieve its national…
Highlights Regulatory changes affecting Chinese platform companies are structural – rather than transitory – in nature. These companies might become quasi-SOEs and could be used by the government to achieve its national…
According to BCA Research's China Investment Strategy service, Chinese leaders' response during the 2018/19 Sino-US trade war may be a roadmap for policy direction in the next 12 months. China's policy shift to a…
Highlights China’s credit tightening may have surpassed maximum strength. Monetary policy will remain accommodative and fiscal policy will become more supportive in the rest of the year. However, overall regulatory oversight is…