China - Market Strategy 05 (Jan 23 - Jun 24)

[winston]

BlackRock Downgrades A-Shrs Mkt to Neutral, Worries Limited Impact of CN Econ Stimulus

BlackRock Investment Institute (BII) released a report, downgrading its rating on the A-shares market from Overweight to Neutral, citing concerns over the limited impact of stimulus measures and the crisis in China's property sector.

According to the report, China's economic growth has slowed and policy stimulus is not as strong as in the past, while no positive developments have come for geopolitical risks, implying that structural challenges in the economy will affect long-term economic growth.

BlackRock also downgraded its rating on emerging market equities from Overweight to Neutral, taking into account the spillover effects of China's slowdown.

However, Japan was upgraded to reflect strong corporate earnings, share buybacks and other shareholder-friendly corporate reforms.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[behappyalways]

China is probing hedge funds that profit from its economic misery, report says
https://markets.businessinsider.com/new ... ing-2023-9

[winston]

Nomura: CN Econ Data Shows Early Signs of Improvement; Strategic Overweight Kept on CN Stocks

Nomura said in its report that it still sees investment value in the China market, citing there are some early signs of improvement in economic data.

Policy remains supportive, with clear signals from Beijing that it wants to reinvigorate the economy, financial markets and confidence.

The broker pointed out that the medium-term focus of investors' attention may limit the valuation, including the US-China relationship and the performance of the property market.

It preferred the Barbell Strategy, such as some laggards riding on the cyclical recovery and structural opportunities, including renewables, EV-related and high-techs. It remained tactically Overweight on Chinese stocks.

Nomura was bullish on Chinese stocks, including:-
1. TENCENT (00700.HK)
2. BABA-SW (09988.HK)
3. CM BANK (03968.HK)
4. PING AN (02318.HK)
5. CHINA OVERSEAS (00688.HK)
5. BYD COMPANY (01211.HK)
6. ANTA SPORTS (02020.HK)
7. SUNNY OPTICAL (02382.HK)
8. HAIDILAO (06862.HK)
9. TRIP.COM-S (09961.HK) and
10. WUXI BIO (02269.HK)

In addition, Nomura held a Neutral view on the Hong Kong market, upbeat on:-
1. AIA (01299.HK)
2. HKEX (00388.HK) and
3. GALAXY ENT (00027.HK).

Source: AAStocks Financial

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[behappyalways]

China's "National Team" Has Small Cash Pile To Rescue Tumbling Stocks
https://www.zerohedge.com/markets/china ... ing-stocks

[behappyalways]

China's "National Team" Is Quiet After August ETF Buying Spree
https://www.zerohedge.com/markets/china ... ying-spree

[behappyalways]

Best market ever. A few buyers, but no sellers allowed!
https://twitter.com/ChinaBeigeBook/stat ... 4467243135

[behappyalways]

China's benchmark $SHCOMP is now few steps away from the psychological barrier of 3,000, last seen in Nov 2022.

The authorities have implemented at least 18 measures to support the stock market since August. Here's a quick recap.
https://twitter.com/Sino_Market/status/ ... 4611377222

[behappyalways]

“US and European fund managers have sold a net $1.6B of Chinese shares so far this month, following $3.5B of outflows in September, data from EPFR Global and Morgan Stanley show. Tech names are being hit hardest, w/ Tencent, BABA, JD seeing most selling”
https://twitter.com/shehzadhqazi/status ... 2938973214

[behappyalways]

"The CSI 300 Index is on track for an unprecedented 3rd year of declines...Global funds are about 66B yuan away from making 2023 the 1st year they sell Chinese shares on a net basis since trading links opened in late 2016"
https://twitter.com/ChinaBeigeBook/stat ... 6909769017

[winston]

China sovereign fund buys ETFs in new bid to boost stocks

China’s sovereign wealth fund bought exchange-traded funds on Monday, expanding its purchases beyond bank shares.

Central Huijin Investment Ltd., a unit of the US$1.4 trillion ($1.92 trillion) wealth fund China Investment Corp bought an undisclosed amount of ETFs and vowed to keep increasing its holdings.

Huijin may have purchased 10 billion yuan ($1.89 billion) in ETFs. The purchases may be focused on ETFs tracking technology-stock indices, which comes in line with regulators’ support of innovation.

The move came shortly after the sovereign fund bought about US$65 million of shares in the nation’s biggest banks this month,

China is considering forming a state-backed stabilization fund to shore up confidence in its US$9.5 trillion stock market.

Central Huijin’s two previous publicly announced moves to purchase ETFs, which occurred in June 2013 and July 2015, were both followed by gains of more than 20% in Shanghai stock indices within three months.

During the 2015 rout, Beijing tapped China Securities Finance Corp. as its main stabilization vehicle by allowing it to access as much as 3 trillion yuan of borrowed funds from sources including the central bank and commercial lenders. The money was used to buy stocks directly and provide liquidity to brokerages. Even so, the turbulence didn’t end until a year later.

Source: Bloomberg

https://www.theedgesingapore.com/news/c ... ost-stocks