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Showing posts from September, 2022

Sizing up the risks for China Macro

  Investor sentiment for Chinese equities and bonds continues to weaken,  both   offshore and onshore.  Reports of sporadic and ever more frequent lockdowns across the country, most recently in Chengdu and Shenzhen are rattling confidence and many global investors have chosen to sell amid the ongoing uncertainty. The negative sentiment among investors has been compounded by ongoing investigations by the Chinese government into internet monopolies. Coupled with ADR delisting risk (which is not over until the pcaob has completed their audits and some say they want to start with Alibaba’s papers) along with high profile reports of mortgage boycotts by purchasers of uncompleted housing projects are only compounding the sense of unease about china’s macro growth and corporate profits going forward.  Despite the nearly 20% plunge in the value of the CSI 300 index so far this year, an index composed of 300 of the largest and most liquid stocks listed onshore in Shenzhen and Shanghai, onshore