Loan prime rate cuts seen too small, market hopes for more
Investors are waiting for a big burst of stimulus from China before they make more aggressive bets on a recovery, having spent the past few months disappointed by economic data and a lack of meaningful policy response from Beijing.
A global fund manager survey by BofA Securities showed shorting Chinese stocks was the second-most “crowded” trade in June, after going long on big tech. The yuan plumbed seven-month lows after a smaller-than-expected interest rate cut raised doubts whether policymakers would act forcefully enough to support the economy.
“But the point is the policy signal. With increasingly more policy measures, hopefully they can turn around this very cautious sentiment.”“I can’t believe that there is anymore bad news to absorb,” said Andy Maynard, head of equities at China Renaissance. Wall Street banks have cut their 2023 growth forecasts, with projections now in a range from 5.1% to 5.7%, as expectations for 6% and above fall by the wayside.Morgan Stanley said the MSCI China index trades at an attractive 12-month forward price-to-earnings ratio of 9.3 - a rare 20% discount to the broader MSCI emerging markets index.
James Liu, CIO of China-focused Neo-Criterion Capital in Singapore, said he has been adjusting defensively, cutting Hong Kong stocks more exposed to geopolitical tensions to invest onshore where foreign ownership is more limited.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Retail investors slow to buy into ARK Innovation Fund’s blistering rallyCathie Wood’s much-watched fund may be poised to regain popularity
Read more »
MP Bachrach urges extension of small business loan repaymentsOnly 15 percent of small businesses have been able to make full repayment as December 31 deadline nears, says Skeena-Bulkley Valley NDP MP
Read more »
Sorry, Beatles, investors need a lot more than love when picking assetsThe more popular a particular investment becomes, the less its profit potential. Read more.
Read more »
Investors keep bets on U.S. rates soon topping out, despite Powell’s hawkishnessComments to lawmakers did little to sway some in futures markets tied to the Fed’s policy rate
Read more »
Larger investors dominate condo ownership in smaller cities in Ontario and B.C.Data from the Canadian Housing Statistics Program shows majority of investment condos are owned by individuals and businesses who hold a minimum of three condos
Read more »
Treasury investors bet on U.S. falling into recessionTreasury bond market investors are betting the Federal Reserve\u0027s interest rate hikes will drive the US economy into recession. Read more.
Read more »