Asian Fixed Income: China and the Global Bond Market

In a previous piece, we discussed that China’s lackluster performance had made it the worst-performing country in the Pan Asian bond market in 2017, and that it was the only country that closed the year in negative territory. The one-year total return of the S&P China Bond Index fell 0.29% last year (see Exhibit 1), Read more […]

Quality over quantity: China’s Economic Growth Focus in 2018 – Part 2

After the Central Economic Work Conference (CEWC), specific plans and targets have been set for China’s economy. What are the investment opportunities followed the CEWC? Investment outlook To achieve high-quality development, the government will promote consumption and private investment to drive growth. Rural reform targeting to alleviate the poverty such as restoring land use rights Read more […]

Quality Over Quantity: China’s Economic Growth Focus in 2018 – Part 1

The Central Economic Work Conference (CEWC) was held in Beijing on 18-20 December, 2017. As the first CEWC after the 19th Party Congress, it set the tone for China’s central government’s economic policies in 2018. They are crucial to the long-term development of the world’s second-largest economy. Highlights of the CEWC (1) High-quality development over Read more […]

Viewing the History of China A-Shares Through the Lens of the Dow Jones China 88 Index

The Dow Jones China 88 Index has recorded the ups and downs of the large-cap mainland China market for more than 20 years. Launched in 1996, the index was one of the first large-cap A-share benchmarks available in the market and therefore is unique in the length of its live, consistent track record. Let’s revisit Read more […]

The Investment Opportunity in China’s “New Era”

The 19th Party Congress of China, one of the most important political events in China this year, has cemented President Xi Jinping’s position as one of the most powerful leaders in decades. His name and political ideology are enshrined in the party constitution, known as “Xi Jinping’s Thought on Socialism with Chinese Characteristics for a Read more […]

Asian Fixed Income: China Was the Worst-Performing Country in the Pan Asian Bond Market

China’s lackluster performance has made it the worst-performing country in the Pan Asian bond market this year.  While China has been among the top three outperforming regions in the past few years, it has significantly lagged its peers in 2017.  Indonesia, as represented by the S&P Indonesia Bond Index, rose 12.6% YTD as of Nov. Read more […]

Does Value Enhance Quality Investing in China’s A-Share Market?

As discussed in my previous blog, quality investing has gained attraction in China, as high-quality stocks recorded remarkable performance in the first nine months of 2017.  As a result, the risk of paying too much for high-quality stocks has become a concern.  To address the issue, on Sept. 29, 2017 we launched the S&P China Read more […]

Are Quality Stocks Expensive in China?

Quality investing has been one of the most widely accepted investment philosophies.  The attractiveness of quality stocks stems from their defensive nature under distressed market conditions.  In China’s A-Share market, quality stocks have gained renewed attraction in 2017.  In the first nine months of 2017, the quality portfolio outperformed the other factor portfolios in absolute Read more […]

Looking Ahead to China’s 19th National Congress

The 19th National Congress of the Communist Party of China (CPC), one of the most important political events this year, will be convened on Oct 18. The reshuffling of the Politburo Standing Committee (PSC) members is crucial to the centralization of power for the new government, as well as the economic and social policies in Read more […]

Asian Fixed Income: Two Growth Segments in China’s Bond Market

China’s bond market continued to expand in 2017.  The local currency bond market, as tracked by the S&P China Bond Index, grew over 19% in the past year.  As of June 30, 2017, the S&P China Bond Index tracked 9,342 bonds with a market value of CNY 51 billion.  Two segments that recorded robust growth Read more […]