CROSS-BORDER CAPITAL SHIFTED TO INFLOWS IN THE FIRST THREE QUARTERS OF THIS YEAR. FX SETTLEMENT RATIO SEES ORDERLY REBOUND RECENTLY, FX SALES RATIO EXPERIENCES STEADY DECLINE. FOREIGN OWNERSHIP OF CHINESE YUAN BONDS SURPASSES $640 BILLION, REACHING RECORD HIGH. Key points from the SAFE press conference Foreign exchange trading remains rational and orderly, with a trading volume of $30.27 trillion in the domestic yuan foreign exchange market for the first three quarters, a 10.1% y/y i...
A global survey conducted by Bank of America in October showed that following China’s stimulus package, the net percentage of global fund managers expecting China’s economy to strengthen over the next 12 months rose to 48%, the highest since April 2023. However, it’s worth noting that global equities just triggered a sell signal from Bank of America, the first time since February 2021...
China is to issue 6 trillion yuan of ultra long CGB bonds over 3 years to help local gov to resolve their off balance sheet debt. This is the biggest effort yet from the central government. There are reasons to believe that these CGBs can be front loaded to cushion the downside, instead of being issued evenly over three years. In 2015-2018, the quota was 5 trillion yuan. There is much misunderstanding regarding these numbers...
SoundOfMusic
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Every 1 RMB consumption stimulus spend by the China government will generate 5 RMB of economic activity. Taxes collected from the 5 RMB of economic activities will be able to pay for the 1 RMB spent by the China government.
SoundOfMusic
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We, as investors in the Western world, don't understand what the China government is doing because they are not a carbon copy of our Western government. Western investors' expectations are very well misplaced. Learn to understand is the key to international affairs.
Here is what you need to know about the Chinese ''fiscal'' press conference: Chinese policymakers are applying a Western-like playbook here. Lift the stock market at all costs. And hope that's enough to loosen financial conditions and rescue the Chinese economy. But there is a problem with that. Contrary to Western societies, Chinese households have most of their wealth stored in the housing market - not in the stock market. The Chinese ec...
$Shenzhen Component Index (399001.SZ)$ $SSE Composite Index (800146.HK)$ $HKEX (00388.HK)$ $BABA-W (09988.HK)$ $TENCENT (00700.HK)$
This fund would aim to promote market stability by buying blue-chip stocks and ETFs at low prices and selling them at higher prices, thereby helping to balance the market.
$BANK OF CHINA (03988.HK)$ $Bank Of China (601988.SH)$ $HKEX (00388.HK)$ $SSE Composite Index (800146.HK)$ $Shenzhen Component Index (399001.SZ)$ $BABA-W (09988.HK)$ $TENCENT (00700.HK)$
FX SETTLEMENT RATIO SEES ORDERLY REBOUND RECENTLY, FX SALES RATIO EXPERIENCES STEADY DECLINE.
FOREIGN OWNERSHIP OF CHINESE YUAN BONDS SURPASSES $640 BILLION, REACHING RECORD HIGH.
Key points from the SAFE press conference
Foreign exchange trading remains rational and orderly, with a trading volume of $30.27 trillion in the domestic yuan foreign exchange market for the first three quarters, a 10.1% y/y i...
$Shenzhen Component Index (399001.SZ)$ CLOSED UP 1.09%, AT 10470.91
$CSI 300 Index (000300.SH)$ CLOSED UP 0.25%, AT 3935.2
$Chinext Price Index (399006.SZ)$ CLOSED UP 0.69%, AT 2210.34.
THE HONG KONG STOCK MARKET CLOSED LOWER ON MONDAY, $Hang Seng Index (800000.HK)$ FELL BY 1.57% AND TECH WAS DOWN BY 2.37%.
CHIPMAKERS AND PHARMACEUTICAL FACTORIES ARE DOWN, $SMIC (00981.HK)$ DROPPED 2.15% AND CHINA TRADITI...
However, it’s worth noting that global equities just triggered a sell signal from Bank of America, the first time since February 2021...
$SSE Composite Index (800146.HK)$ $China Universal SSE Composite ETF (510980.SH)$ $Shenzhen Component Index (399001.SZ)$ $SZ COMPONENT ETF (159943.SZ)$ $Hang Seng Index (800000.HK)$ $KraneShares CSI China Internet ETF (KWEB.US)$
This is the biggest effort yet from the central government. There are reasons to believe that these CGBs can be front loaded to cushion the downside, instead of being issued evenly over three years. In 2015-2018, the quota was 5 trillion yuan.
There is much misunderstanding regarding these numbers...
$Hang Seng Index (800000.HK)$ $Shenzhen Component Index (399001.SZ)$ $SSE Composite Index (800146.HK)$ $KraneShares CSI China Internet ETF (KWEB.US)$ $Hang Seng Index (800000.HK)$
$KraneShares CSI China Internet ETF (KWEB.US)$ $SSE Composite Index (800146.HK)$ $Shenzhen Component Index (399001.SZ)$ $BABA-W (09988.HK)$ $TENCENT (00700.HK)$ $Hang Seng TECH Index (800700.HK)$
Chinese policymakers are applying a Western-like playbook here.
Lift the stock market at all costs.
And hope that's enough to loosen financial conditions and rescue the Chinese economy.
But there is a problem with that.
Contrary to Western societies, Chinese households have most of their wealth stored in the housing market - not in the stock market.
The Chinese ec...
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