While infrastructure stocks garner all the attention in this low-growth, low-rate market, Marcus Padley, Director of Marcus Today, thinks they’re ‘highly-priced.’ Instead, he identifies Chinese-consumer facing stocks, such as Blackmores and Bellamy’s, as a sector that will continue to “sparkle and amaze.” He says that Chinese businesspeople place a higher... Show More
According to Bloomberg “The outstanding balance of margin loans on the Shanghai and Shenzhen bourses has tumbled by 60 percent to $147 billion since the June peak. Borrowed funds now account for 2.8 percent of overall market capitalization, a 10-month low and down from a record 4.5 percent earlier this... Show More
The Wall Street Journal has released an article packed full of charts that gives some great perspective on China, its markets and how they compare globally. The key points that the WSJ makes are: 1) The combined value of China's stock markets eclipses many of the world's biggest exchanges… 2)... Show More
Andrew Sheng, Distinguished Fellow, Fung Global Institute and Xiao Geng Show More
In an interview with the ABC Kerr Neilson says that although he’s not “unusually” worried about China he does believe it’s growing at closer to 4% than 7%. “Well all the indicators we look at, and I'm not talking about electricity or those old fashion measures, but the other measures... Show More
The recent surge and violent decline of the share market in China has been filling the most recent headlines. But beyond this financial turbulence, there’s still a bigger story to be told about this giant market, says Saxo’s chief economist and CIO Steen Jakobsen, who recently visited China. Despite the... Show More
Having just returned from Europe, I was struck by the different perspectives on the two dominant themes in the markets at the moment- China and Greece, the former is being painted as a political issue while the latter is being painted as an economic one. In fact, to me at... Show More
Pauline Loong, managing director of Asia-Analytica Research has put together five observations every investor should know when investing in Chinese stocks. After experiencing the loss of US$3.4 trillion in share value in only three weeks (close to US$1 billion for each minute of trading on mainland exchanges), her observations are... Show More
“Fidelity Investments, which oversees the largest China funds outside of the mainland, is joining Goldman Sachs Group Inc. in saying that Chinese stocks are a buy following the worst selloff in two decades.” (Bloomberg) Our view? There have been some big short positions in China’s stock markets, including from some... Show More
The Economist writes “Lost in all the drama about the (Chinese) stockmarket is that it still plays a surprisingly small role in China. The free-float value of Chinese markets - the amount available for trading - is a third of GDP, compared with more than 100% in developed economies. Less... Show More
“Over the weekend, the Chinese government unfurled a series of measures to stop its stock markets’ free-fall the scale of which has never before been seen. It is essentially giving investors a “Xi Jinping put” — meaning, the government is assuring investors it will do what it has to to... Show More
Frederic Neumann, co-head of Asian economic research at HSBC in Hong Kong says ultimately China’s stock market dive will be more consequential than the Greek Crisis. "What happens in China will turn out to be far more consequential than any sting that Greece may deliver over the coming weeks or... Show More
After the news of Qihoo’s management buyout bid last week, investors have been “feverishly looking for other Chinese (listed) companies that are planning to privatise”, says Neil Flynn, Portfolio Manager at Alcuin Asset Management. This speculative momentum has pushed the shares of social networking and instant messaging app Momo. But... Show More
Bloomberg reports that “It’s no longer a question of whether China’s stock-market rally is a bubble, but when the bubble will burst.” Even if the bubble doesn’t burst by itself, Analysts at CLSA believe that the Chinese Government could step in and engineer a correction if stock valuations rise much... Show More
Good Morning, Show More
Carson Block of Muddy Waters says the Chinese stock market momentum is “clearly being driven by liquidity being driven into the system. Policymakers were starting to take the air out of the real estate bubble, then they’ve stared into the abyss and thought, oh my god, we don’t want to... Show More
Just over a month ago, Roger Montgomery sent a warning to investors about investing in Chinese companies listed in the US or Australia. Montgomery says Aussie investors should not invest in Australian or US-listed Chinese companies unless your adviser can provide an exceptional objection as Show More
Some very strange things have occurred at Hanergy Thin Film – the company owned by China’s (former) richest man, Li Hejun. 1) The stock crashed by more than 50% in less than one second. “Before its crash and indefinite trading suspension, Hanergy’s market value was higher than all other listed... Show More
"Chinese stocks posted their biggest advance in nearly four months on Tuesday, after the government unveiled guidelines to reform its economic system in 2015, which includes further opening up of capital markets." Show More
Last week, the Chinese search engine company Qihoo and the domestic smartphone manufacturer Coolpad announced the name of their joint venture: QiKU. Shanghai-based Neil Flynn, portfolio manager of Alcuin Asset Management, says the new company has cleared doubts about its ability to compete in the smartphones business, which benefits US-listed... Show More
