Livewire has acquired Market Index, the country’s leader in free stock market data.
Find out why.

China's top macro fund wagers against consumption-driven growth

Livewire News

Livewire

China’s top-performing macro fund is betting against one of the primary drivers of the nation’s economy: Consumption. Lu Jun, whose Congrong Allweather Fund returned 91 percent last year, says wage gains will slow abruptly as early as the second quarter as companies struggle with falling profits. That’s going to hit consumption and may result in retail-sales growth more than halving to 5 percent by the end of 2016, he said, citing his company’s own calculations. Lu said he’s keeping stock exposure low and has “fully hedged” all such holdings with short positions in equity-index futures, while declining to mention any specific securities. He’s also holding “a lot of cash” and money-market securities as he’s bracing for further declines in the stock market amid slowing growth. “We’ll just wait and see, till the storm passes,” Lu said. (VIEW LINK)


1 topic

Livewire News
Livewire News
Livewire

Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.