China’s August PMIs improved, but underlying data point to persistent weakness and limited momentum. The official NBS composite rose to 50.5 from 50.2, with manufacturing still in contraction at 49.4 and services edging higher to 50.…
Our Global Asset Allocation strategists upgrade the Chinese yuan to overweight as global imbalances between production and consumption begin to reverse. The US continues to overconsume and underproduce, while China overproduces and…
The US overconsumes and underproduces. China overproduces and underconsumes. There are early signs that this decades-old imbalance has peaked and is beginning to reverse. Upgrade the CNY to overweight.
Our China Investment strategists advise against chasing the recent equity rally but recommend a tactical long on onshore small and mid caps versus large caps ahead of potential stimulus. Their new China Economic Pressure Indicator (…
July data confirm China’s weak growth, with no near-term shift toward meaningful stimulus. New home prices fell 0.31% m/m, retail sales slowed to 3.7% y/y from 4.8%, and industrial production eased. Flooding in July disrupted…
China’s July inflation data confirmed entrenched deflation, reinforcing our defensive stance on Chinese equities and overweight in onshore bonds. CPI slowed to 0% y/y from 0.1%, while factory-gate prices stayed deeply negative…
Our China Investment strategists maintain a defensive stance on Chinese equities, favoring A-shares over offshore markets. The earnings outlook remains weak, and the full impact of US tariffs has yet to be felt. Chinese equities have…