--- title: Chinese equities start the year with a bang description: U.S. macroeconomic statistics point to a soft landing, while Chinese equities come back to life and European stocks outperform. Each week, the Syz investment team takes you through the last seven days in seven charts. image: https://blog.syzgroup.com/hubfs/iStock-1165633152.jpg --- [![Syz Private banking](https://blog.syzgroup.com/hs-fs/hubfs/Logo.png?width=140&name=Logo.png "Syz Private banking")](https://www.syzgroup.com/fr) ## **Thinking** out loud [Subscribe](https://25733253.hs-sites-eu1.com/newsletter-signup?hsLang=en) [![Contact Us](https://hubspot-no-cache-eu1-prod.s3.amazonaws.com/cta/default/25733253/3d762f49-4e71-4f99-97b1-bf6781ef3da2.png)](https://hubspot-cta-redirect-eu1-prod.s3.amazonaws.com/cta/redirect/25733253/3d762f49-4e71-4f99-97b1-bf6781ef3da2) - [OUR SERVICES](https://www.syzgroup.com/en/private-banking) - [ABOUT SYZ](https://www.syzgroup.com/en/about/welcome-to-syz) - [CAREERS](https://www.syzgroup.com/en/careers) - [PRESS](https://www.syzgroup.com/en/news) - [Blog Homepage](https://blog.syzgroup.com) - [Slow Food for Thought](https://blog.syzgroup.com/slow-food-for-thought) - [Focus](https://blog.syzgroup.com/slow-food-for-thoughts/tag/focus) - [Asset allocations Insights](https://blog.syzgroup.com/slow-food-for-thoughts/tag/asset-allocation-insights) - [Market Outlook](https://blog.syzgroup.com/slow-food-for-thoughts/tag/market-outlook) - [Swiss Perspectives](https://blog.syzgroup.com/slow-food-for-thoughts/tag/swiss-perspectives) - [Syz the moment](https://blog.syzgroup.com/syz-the-moment) - [Crypto corner](https://blog.syzgroup.com/crypto-corner) - [Syz AI Insights](https://blog.syzgroup.com/syz-ai-insights) - [Fast Food for Thought](https://blog.syzgroup.com/fast-food-for-thought) - [The week in seven charts](https://blog.syzgroup.com/fast-food-for-thoughts/tag/the-week-in-seven-charts) - [Flash](https://blog.syzgroup.com/fast-food-for-thoughts/tag/flash) - [Fixed Income Weekly](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-fixed-income) - [Equity Weekly](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-equities) - [Global markets outlook](https://blog.syzgroup.com/fast-food-for-thoughts/tag/global-markets-outlook) - [CONTACT](https://www.syzgroup.com/en/contact-us/form) - [ENGLISH](https://www.syzgroup.com/) - [FRANÇAIS](https://www.syzgroup.com/fr) - [Slow Food for Thought](https://blog.syzgroup.com/slow-food-for-thought) - [Focus](https://blog.syzgroup.com/slow-food-for-thoughts/tag/focus) - [Asset allocations Insights](https://blog.syzgroup.com/slow-food-for-thoughts/tag/asset-allocation-insights) - [Market Outlook](https://blog.syzgroup.com/slow-food-for-thoughts/tag/market-outlook) - [Swiss Perspectives](https://blog.syzgroup.com/slow-food-for-thoughts/tag/swiss-perspectives) - [Fast Food for Thought](https://blog.syzgroup.com/fast-food-for-thought) - [Flash](https://blog.syzgroup.com/fast-food-for-thoughts/tag/flash) - [Weekly Fixed Income](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-fixed-income) - [The week in seven charts](https://blog.syzgroup.com/slow-food-for-thoughts/tag/the-week-in-seven-charts) - [Global markets outlook](https://blog.syzgroup.com/fast-food-for-thoughts/tag/global-markets-outlook) - [Weekly Equities](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-equities) - [Syz the moment](https://blog.syzgroup.com/syz-the-moment) - [Crypto corner](https://blog.syzgroup.com/crypto-corner) - [Syz AI Insights](https://blog.syzgroup.com/syz-ai-insights) - [Our Services](https://www.syzgroup.com/en/private-banking) - [About Syz](https://www.syzgroup.com/en/about/welcome-to-syz) - [Careers](https://www.syzgroup.com/en/careers) - [Press](https://www.syzgroup.com/en/news) - [Contact](https://www.syzgroup.com/en/contact-us/form) - [English](https://www.syzgroup.com/) - [Français](https://www.syzgroup.com/fr) ## **Sign-up** for our newsletter This website uses cookies to enhance user navigation and to collect statistical data. You can change your settings below to refuse the use of cookies. For more information, please refer to the [Cookies policy](https://www.syzgroup.com/en/legal-notices). Mandatory cookies Functional cookies Statistics & marketing I confirm I am not a US citizen residing in the US I confirm I am not accessing this site from the US I confirm that I am not a resident of Canada (except for Ontario, Quebec, British Columbia or Alberta). Agree and confirm ### Restricted access We are sorry that for legal reasons we are not able to help US citizens or Canadian residents other than in Ontario, Quebec, or Alberta. Best wishes for the future… ### Restricted access We are sorry that for legal reasons we are not able to help US citizens or Canadian residents other than in Ontario, Quebec, or Alberta. Best wishes for the future… You chose the following profile. If you made a mistake, please change here USA Country Switzerland Canada: Other than Ontario, Quebec, Alberta Canada: Ontario, Quebec or Alberta USA Other country Language Language English French German Italian I confirm Legal information This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document. [The week in seven charts](https://blog.syzgroup.com/fast-food-for-thought/tag/the-week-in-seven-charts) ### Chinese equities start the year with a bang U.S. macroeconomic statistics point to a soft landing, while Chinese equities come back to life and European stocks outperform. Each week, the Syz investment team takes you through the last seven days in seven charts. [![Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/hubfs/charles-2.jpg)](https://blog.syzgroup.com/fast-food-for-thought/author/charles-henry-monchau) [**Charles-Henry Monchau, CFA, CMT, CAIA**](https://blog.syzgroup.com/fast-food-for-thought/author/charles-henry-monchau) Chief Investment Officer **Tuesday, 01/10/2023** | - ![Pdf](https://blog.syzgroup.com/hubfs/pdf%20(1).png) - - - - #### Chart #1 — ## Latest U.S. macroeconomic statistics point to a soft landing for the economy Friday's labor market report was the most anticipated information of the week. Nonfarm payrolls rose by 223,000 in December, the smallest increase in two years (while still above consensus expectations). The separate household survey showed that unemployment fell to its lowest level since the pandemic, at 3.5%. But the statistic that reassured the markets was average hourly earnings, which rose "only" 0.3% from the previous month, slightly less than expected. November's increase was revised downward. It would seem that wage growth is slowing down, a development that should allow the Federal Reserve to soon put an end to the monetary tightening cycle. This should make the financial markets happy.  On Friday, we also learned that the Institute for Supply Management (ISM) service sector activity index fell to 49.6, well below consensus and into contractionary territory (below 50) for the first time since May 2020 as new orders slowed sharply.  These statistics point to a soft landing for the U.S. economy. ##### Change in US hourly wages over 12 months ![Picture1-3](https://blog.syzgroup.com/hs-fs/hubfs/Picture1-3.png?width=606&height=490&name=Picture1-3.png) Source: U.S. Department of Labor --- #### Chart #2 — ## Bad economic news is interpreted positively by the markets We are in a phase of the cycle where good news can be interpreted by the markets as bad news, and vice versa. For example, equities were under pressure earlier this week when U.S. macroeconomic data showed continued strong job creation and declining initial jobless claims. Equity markets then rallied sharply on Friday following the ISM report and the employment report that showed wage growth fading (see point 1). On Friday, these releases led to a sharp decline in both short- and long-term U.S. Treasury yields, with the U.S. 10-year yield falling by more than 30 basis points on the week. The sharp rise in the major U.S. equity indices on Friday allowed them to end the week in the green.   We also note that the technical picture for the S&P 500 improved on Friday with a close above the 20-day moving average (although the index remains below the 50-day moving average). ##### Equity and bond markets have fluctuated amid shifting Fed expectations ![Picture2-2](https://blog.syzgroup.com/hs-fs/hubfs/Picture2-2.png?width=608&height=338&name=Picture2-2.png) Source: Edward Jones  --- #### Chart #3 — ## Have U.S. large-cap technology stocks come to the end of their outperformance trend? U.S. mega-cap companies (Amazon, Apple, Alphabet, Microsoft, Tesla, Meta) lost a total of $4.7 trillion in market capitalization in 2022. An equally-weighted basket of the 5 largest U.S. technology companies is down 41% year-over-year.  Has the absolute and relative downward movement come to an end? Perhaps not. Investors have favored these stocks for years (including 2022), but it is possible that the movement out of these stocks and into other segments of the market or international stocks (see next point) is just beginning.  Indeed, the outperformance of the technology sector relative to the S&P 500 seems to have peaked (see below) and the potential for adjustment is relatively large.  In the fourth quarter, the technology sector accounted for 40% of the index, compared to 19% for emerging markets, 13% for Japan and 7% for Europe. However, the weighting is declining as the top 8 stocks have seen their weight in the index drop from a peak of 30% in 2022 to 21% at the start of the year.  ##### Technology sector relative price index to the S&P 500 ![Picture3-1](https://blog.syzgroup.com/hs-fs/hubfs/Picture3-1.jpg?width=712&height=556&name=Picture3-1.jpg) Source: BofA --- #### Chart #4 — ## Strong outperformance of European equities since September Investor positioning and flows continued to favor U.S. equity markets last year, with $160 billion of inflows into U.S. equities in 2022 while $107 billion exited European equities in the same year. At the time, the U.S. had reached a record high (63%) as a share of the global equity market. But since September, European equities have strongly outperformed U.S. indices due to worse-than-expected macroeconomic figures in Europe, a 50% drop in natural gas prices, the anticipation of China's reopening (an export-friendly development) and resilient earnings of European companies. The setbacks of US technology majors are also prompting international investors to switch to European stocks.  ##### European equities have strongly outperformed US equities since September ![Picture4-2](https://blog.syzgroup.com/hs-fs/hubfs/Picture4-2.png?width=616&height=390&name=Picture4-2.png) Source: Bloomberg --- #### Chart #5 — ## Chinese equities start the year with a bang The MSCI China Index is up 5.8% since trading resumed Tuesday, marking its best start of a year since 2009, after losing nearly 24% in 2022. The top gainers so far this year are real estate developers and technology companies.  The iShares MSCI China ETF is up 46% since November. The KraneShares CSI China Internet ETF is up 88% over the same period. The Hang Seng just broke above its 200-day moving average. What are the catalysts for this rise? The main drivers are the end of the very restrictive health policy against covid-19 and a series of policy developments that signal a return to economic pragmatism, including plans to support the real estate sector, discussions on ending the ban on Australian coal imports and an easing of restrictions on large technology companies.     ##### The Hang Seng Index has just broken its 200-day moving average ![Picture5-1](https://blog.syzgroup.com/hs-fs/hubfs/Picture5-1.png?width=1005&height=556&name=Picture5-1.png) Source: Bloomberg --- #### Chart #6 — ## The end of the ice age We saw a sharp drop in US bond yields on Friday. But the event of the week on the bond market is most certainly the end of the negative yield bonds era. While the value of these bonds was $18 trillion in December 2020, it is now zero. ##### Notional value of negative-yielding bonds ![Picture6-1](https://blog.syzgroup.com/hs-fs/hubfs/Picture6-1.jpg?width=616&height=384&name=Picture6-1.jpg)Source: Bloomberg --- #### Chart #7 — ## For the first time in history, "green" bond issuance exceeds that of companies in the fossil fuel sector A green bond is a bond issued on the financial market by companies or public entities with the objective of financing their own environmental projects to the fight against global warming. By financing products that promote clean energy and ecological transition, investors benefit from a double financial and environmental advantage. ##### In green, "green" bond issues. In black, bond issues issued by the fossil fuel sector ![Picture7-1](https://blog.syzgroup.com/hs-fs/hubfs/Picture7-1.jpg?width=524&height=362&name=Picture7-1.jpg)Source: Bloomberg #### Disclaimer This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document. Read More ## Related Articles [The week in seven charts](https://blog.syzgroup.com/fast-food-for-thought/tag/the-week-in-seven-charts) #### [Four years into the bull market](https://blog.syzgroup.com/fast-food-for-thought/four-years-into-the-bull-market?hsLang=en) Meanwhile, earnings growth, not valuation expansion, is doing the heavy lifting behind the S&P 500’s rally. Each week, the Syz investment team takes you through the last seven days in seven charts. **[Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/author/charles-henry-monchau?hsLang=en)** | 12/10/2026 [The week in seven charts](https://blog.syzgroup.com/fast-food-for-thought/tag/the-week-in-seven-charts) #### [Is France’s sovereign debt heading towards “junk” territory?](https://blog.syzgroup.com/fast-food-for-thought/is-frances-sovereign-debt-heading-towards-junk-territory?hsLang=en) Meanwhile, what does Anthropic’s $2tn valuation assume about future growth? Each week, the Syz investment team takes you through the last seven days in seven charts. **[Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/author/charles-henry-monchau?hsLang=en)** | 05/10/2026 [The week in seven charts](https://blog.syzgroup.com/fast-food-for-thought/tag/the-week-in-seven-charts) #### [The 10-year Treasury yield hits a 19-year high](https://blog.syzgroup.com/fast-food-for-thought/the-10-year-treasury-yield-hits-a-19-year-high?hsLang=en) Meanwhile, US earnings growth leaves the rest of the world behind. Each week, the Syz investment team takes you through the last seven days in seven charts. **[Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/author/charles-henry-monchau?hsLang=en)** | 28/09/2026 ## Straight from the Desk # Syz the moment Live feeds, charts, breaking stories, all day long. [Discover more](https://blog.syzgroup.com/syz-the-moment?hsLang=en) ## **Thinking** out loud Sign up for our weekly email highlighting the most popular posts. Follow us ## **Thinking** out loud - - - - ## **Investing** with intelligence Our latest research, commentary and market outlooks #### [Weekly Market Update](https://blog.syzgroup.com/fast-food-for-thoughts/tag/weekly-market-update?hsLang=en) #### [Focus](https://blog.syzgroup.com/slow-food-for-thoughts/tag/focus?hsLang=en) #### [Asset Allocation Insights](https://blog.syzgroup.com/slow-food-for-thoughts/tag/asset-allocation-insights?hsLang=en) #### [Semi-annual Outlook](https://blog.syzgroup.com/slow-food-for-thoughts/tag/semi-annual-outlook?hsLang=en) - [Contact](https://www.syzgroup.com/en/contact-us/form) - [Terms & conditions](https://www.syzgroup.com/sites/default/files/document/2021-12/001-2_en-general_terms_and_conditions_w.pdf) - [Data protection notice](https://www.syzgroup.com/en/data-protection-notice) - [Cookies policy](https://www.syzgroup.com/en/legal-notices) - [Syzgroup.com](https://www.syzgroup.com/) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Charles-Henry Monchau, CFA, CMT, CAIA", "url" : "https://blog.syzgroup.com/fast-food-for-thought/author/charles-henry-monchau" }, "dateModified" : "2023-01-10T10:21:01.664Z", "datePublished" : "2023-01-10T09:53:07.000Z", "headline" : "Chinese equities start the year with a bang", "image" : [ "https://blog.syzgroup.com/hubfs/iStock-1165633152.jpg" ], "mainEntityOfPage" : { "@id" : "https://blog.syzgroup.com/fast-food-for-thought/chinese-equities-start-the-year-with-a-bang-0", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.syzgroup.com/hubfs/Logo%20(1).png" }, "name" : "Syz Group" } } ```