Slowing economic growth, uncertainty about government policy and disappointing returns have made equity investors wary of China. In other words, it’s a perfect time to hunt for investment opportunities. (more…)
Infrastructure investment in China is an important indicator of demand and a key signal of Beijing’s ability to revive the economy. This week, a flurry of news suggested that the rebound in infrastructure investment is gathering momentum. (more…)
Expansionary policy in Asia helped lead the world out of its slump after the 2008 financial crisis. While the region doesn’t have as much room for manoeuvre as it did then, we think it has ample firepower to deploy if the global economy slides into recession again. (more…)
China’s recent move to widen the renminbi’s trading band is unlikely to impact the near-term path of the currency, but we believe it represents another important step forward in the country’s financial liberalization. Below, my colleague Anthony Chan explains how a more flexible—and stronger—currency is a vital component of policymakers’ efforts to rebalance China’s export-dependent economy. (more…)
China is set to overtake the US as the world’s largest economy in less than a decade, but its currency, the renminbi, still accounts for just a tiny fraction of global trade settlement. While there’s a long way to go before it’s viable as a global reserve currency, we think that the renminbi will challenge the US dollar’s dominance in the Asia-Pacific region sooner than many expect. (more…)
The prospect of currency gains has long been a key attraction for investors seeking exposure to Chinese assets. But this week, The People’s Bank of China said China’s currency, the renminbi, was now close to its “equilibrium value.” We think the currency’s appreciation is far from over, as my colleague Anthony Chan explains below.
With bond yields at historical lows and the risk-free status of many developed countries under question, many investors are looking to diversify the income stream in the defensive part of their strategies. So why are Asian ex Japan bonds typically so underrepresented in fixed-income portfolios? (more…)
A reader of my recent article on dim sum bonds, which was reposted on Seeking Alpha, expressed confusion about what action we recommend. While we are not, per se, making recommendations, here’s a clarification of what I meant. (more…)
The fast-growing market in “dim sum” bonds has been an enticing choice for foreign investors with an appetite for assets denominated in China’s currency, the renminbi. But recent rule changes by Chinese regulators that open the market to further issuance may give investors a bellyache in the near term.