The internationalization of China’s currency is proceeding hand in hand with the liberalization of the country’s capital markets. If China can surmount its short-term challenges, the impact of these reforms on global economies and markets should be profound. (more…)
It’s a powerful vision for the world’s future. The US and China: two growth powerhouses; two major currencies.
Plans for a new Shanghai-Hong Kong trading system are among three developments that we expect will give a boost to China’s equity markets in the medium to long term. So despite concern about the economic outlook, now could be the time to begin rethinking China from an investment perspective. (more…)
Stuart Rae (pictured) and Rajeev Eyunni
As developed-market equities continue to scale multiyear highs, their emerging-market counterparts—most notably Asian ex Japan stocks—have been more hesitant. Is it time for investors to take a closer look at the region? (more…)
Stuart Rae (pictured) and John Lin
For investors in China equities, there have traditionally been two ways of approaching the market: through expensive growth stocks, or risky contrarian plays. Now, thanks to China’s reforms, there’s a third way which may offer a better balance of risk and return. (more…)
By Hayden Briscoe (pictured) and Hua Cheng of AllianceBernstein (NYSE:AB)
Despite worries about a collapse in China’s property market, we think the financial system will navigate the coming credit cycle if banks can buy time to resolve loan problems—and receive government support if needed. (more…)
By Hayden Briscoe (pictured) and Jenny Zeng of AllianceBernstein (NYSE:AB)
Concerns about a possible collapse in China’s property market continue to grow. However, our research suggests that fundamentals are more robust than many think. The biggest danger lies in the potential for policy mistakes. (more…)
Asia’s three biggest economies—China, India and Japan—are carrying out reform programs. Taken individually, these may do little to excite investors’ imaginations, but taken together, they become much more interesting.
As Japanese equities struggle to make headway this year after an explosive 2013, new questions are being asked about the economy’s direction. From an investor’s perspective, we think the sluggish export trend may be masking a more positive environment for stocks. (more…)
While this week’s sell-off in Asian currency and bond markets does not, as yet, amount to a crisis in our view, it is obviously cause for concern. At this stage, we think two outcomes are likely: one is that central banks and supranational funding agencies will work together to avert a full-blown crisis; the other is that China will emerge with its power and prestige as a regional financial powerhouse considerably enhanced. (more…)