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 […]

China’s Green Bond Markets

China has emerged as a global leader in green finance, especially green bonds, and from 2014 to 2016, it was the fastest-growing market in the region for sustainable investing.  The total amount of green-labeled bond issuances amounted to USD 93.4 billion at the end of 2016 and reflected strong China-based issuances (40% of labeled green Read more […]

China’s Bank Stress Test and its Exposure to Environmental Risk

In just over two years, China has developed a policy framework for green finance that aims to shift capital from “brown” fossil fuel industries to “green” low-carbon technologies. We have also seen impressive growth in Chinese green bond issuance that has taken the world by surprise. On joining-up green finance policy and practice, China is Read more […]

Reading between the lines of China’s “Twin sessions”

China’s National People’s Congress, the annual plenary session of China’s legislature, is done and dusted. No major policy upheaval ahead the 19th Party Congress in November. Nonetheless, the shift in tone in the government work report have shed some light on China’s policy direction. 1. Tone shifted from “maintaining growth” to “containing risk” The theme Read more […]

Asian Fixed Income: What Does it Look Like Without India and China?

According to the S&P Pan Asia Bond Index, India and China together represented 79% of the overall market value as of April 18, 2016.  While foreign investor access to these countries is opening up, the investability is still limited.  The market value excluding these two countries is around USD 2 trillion, as tracked by the Read more […]

Asian Fixed Income: PBOC Has Widened Access to China’s Onshore Bond Market for Foreign Investors

On Feb. 24, 2016, the People’s Bank of China announced that offshore commercial banks, insurance companies, securities companies, fund management companies, and pension funds are free to invest in China’s interbank bond market.  Previously, foreign investors could only access China’s onshore bond market through a QFII or RQFII quota.  The removal of the quota system Read more […]

China’s Stock Market and Its Currency

The New Year opened with large declines and massive volatility in China’s stock market.  According to US press reports, continuing declines in the value of China’s currency, the RMB, are a major factor in the poor performance of the market. While the RMB has slid against the dollar, falling from 6.21/USD at the beginning of Read more […]

Accessing China’s Growth via Dividends

In the current environment of short-term volatility amid a long-term positive outlook for the Chinese economy, a focus on growing, sustainable dividends in China’s equity markets could provide the opportunity to get a slice of the region’s structural growth and potential downside protection compared with a typical growth strategy, such as an earnings growth strategy. Read more […]