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Feb 18
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$60.95
$60.95
+0.0%
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LONG
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Bank of America Analyst
Head of Asia-Pacific Equity Derivatives Research
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Beijing is allowing the Renminbi to strengthen. A significant portion of Hong Kong earnings are derived in Renminbi. A stronger currency mathematically inflates the earnings of these companies when reported, acting as a passive tailwind for valuations. Bullish on Hong Kong/China equities as a currency play and a diversification hedge against US tech concentration. US-China trade war escalation could override currency benefits. |
Bloomberg Markets
Geneva Diplomacy: US-Iran Hail Progress in Nu...
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Feb 15
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$60.35
$60.95
+1.0%
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AVOID
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Paul Krugman
Nobel Prize-winning Economist, Distinguished Professor, Publisher of the Paul Krugman Substack
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Krugman argues China is "exporting the demand deficiency via trade surpluses" and predicts China will "run into a wall of tariffs by everybody," specifically noting a coming "big European backlash." China's economic model relies on exports to offset weak domestic consumption. If both the US (already 37% tariffs) and Europe (coming soon) block these exports, Chinese manufacturing and export-heavy equities will suffer severe revenue compression. AVOID Chinese equities, particularly exporters. China successfully pivots to domestic consumption (which Krugman deems necessary but hasn't happened yet). |
Monetary Matters
“A Huge Problem for Everybody” | Paul Krugman...
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Feb 13
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$60.35
$60.95
+1.0%
|
LONG
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@briantycangco
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The development of "smart manufacturing," "smart cities," and eventually a "smart country" in China is expected to unleash significant social and economic gains, suggesting a bullish outlook for China-related investments. |
@burggrabenh
The world doesn’t run on greed, it runs on en...
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