Displaying items by tag: China

Tuesday, 28 September 2021 20:34

Don’t Worry, It’s Too Big to Fail

China’s giant real estate group Evergrande Real Estate Group is in hot water. While they may be China’s second-largest real estate holding company, they are the world’s most indebted as their balance sheet carries an excess of $300 billion in liabilities. Despite this, some of the most prominent investment firms such as BlackRock, UBS, and HSBC Holdings have all bought up their debt. Evergrande’s bonds are trading at 25 cents on the dollar. BlackRock, for example, has increased its holdings from 12.2 million units to 43.5 million YTD and is now nearly 1% of its portfolio. Evergrande is taking measures like discounting apartments, parking spaces, or retail property to pay back its debt as notes are beginning to reach their maturity. Many investors are expecting Chinese authorities to step in to accommodate the debt by either rolling it over or taking other measures.


FINSUM: There is certainly safer debt to hold, but many investment firms see Evergrande as a buy and a risk worth taking because it may be too big to fail.

Published in Bonds: Total Market
Wednesday, 15 September 2021 19:28

Volatility is an Equity Ally

Chinese regulators have come after everything from internet companies to education platforms, and this has left many investors skittish. Investors that would have maintained their convictions would have been well-suited, as since mid-August Chinese internet companies have bounced. Over this same time frame the MSCI Emerging Market Index, which holds a large share of Chinese companies, has doubled the return in the S&P 500. China’s focus on future regulation will better promote growth moving forward. The structure formed may benefit semiconductor companies, smart manufacturing, alternative energy, machine learning, cloud computing, autonomous vehicles, and other internet-related companies. Finally, Chinese companies have been quick to undue overwrought regulation and long-term regulation will be moderate.


FINSUM: Investors shouldn’t be too fickle with China, don’t spend too much time trying to nail regulatory swells, and embrace the long haul.

Published in Eq: Asia

(Washington)

China has been a no-brainer for any diverse portfolio and quite frankly continues to be one…see the full story on our partner Magnifi’s site.

Published in Wealth Management
Monday, 12 July 2021 20:19

Chinese Central Bank Floods the Market

(Beijing)

Much of the attention has been on the Fed and how they will respond to the U.S. economy, but…see the full story on our partner Magnifi’s site.

Published in Eq: Asia

(Beijing)

For the average investor the biggest risk exposure is how…see the full story on our partner Magnifi’s site

Published in Eq: Asia
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