Free Trial
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
- In the past few months, we have seen that China 'liquidity' has been contracting sharply, which generally tends to weigh on both domestic and international asset prices.
- For instance, the chart below shows how strongly China Tech stocks have co-moved with the annual change in the Total Social Financing (TSF) 12M sum in the past cycle.
Source: Bloomberg/MNI
- In addition, cyclical and value sectors such as China financials have also struggled to trend higher despite the significant increase in global liquidity and have been consolidating lower since the start of the month.
- With a current price-to-book ratio of 0.74 and a price-to-earnings ratio of 5.84, China financials are considered to be extremely 'cheap' relative to EM financials (MXEF0FN Index), which currently offer a P/B of 1.15 and a PE of 10.97.
- China Financials are down 5% MtD and are gradually approaching their 200D SMA support at 482.80; a break below that level would open the door for a move down to 471.
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok