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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
- The global risk-off sentiment triggered by the renewed geopolitical tensions and surging stagflation risks have left China equities vulnerable in recent weeks despite PBoC easing policy.
- Last week, PBoC reported that credit demand weakened sharply in April amid Covid lockdowns significantly disrupting the economic activity.
- Even thought the annual change in China ‘liquidity’ keeps rising, and is currently pricing in a rebound in liquidity-sensitive stocks such as tech equities (chart below), market uncertainty and the significant deceleration in the Chinese economy could limit the upside gains on domestic risky assets.
- We saw that JPM recently upgraded some tech stocks (i.e. Tencent, Alibaba, Meituan…) to overweight.
- However, we would need to see a low in US growth stocks to see a strong rebound in China tech; it will be difficult to see China tech stocks trending higher while Nasdaq remains in a bear market.
- The lack of visibility in markets, no convictions, rising credit spreads make it hard to see a 'healthy' rebound in markets for now.
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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