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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CHINA
- Chinese regulators continue to apply pressures on the tech giants, with Beijing pushing to break up Alipay, the superapp owned by Jack Ma's Ant Group that has more than 1 billion users.
- According to the Financial Times, regulators want Alipay to create a separate app for its loan business, and turn over user data for loan approvals to a new credit-scoring join venture, in which Chinese state-owned business will have a significant stake.
- The little enthusiasm we saw in the end of August / beginning of September on Chinese tech stocks could start to cool off; Hang Seng Tech Index is down over 5% since last week's high.
- We previously saw that an important driver of China tech stocks in the past 5 years has been China 'liquidity' (which we define as the annual change in the Total Social Financing 12M sum), which has contracted significantly in the past 10 months.
- The chart below shows the strong co-movement between China liquidity and China tech stocks.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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