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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.
September delivered another enormous trade surplus: $133.5 billion, with exports surging 36.3% year-on-year. Expecting Beijing to abandon export-led growth anytime soon looks wishful. China’s economy is increasingly K-shaped: • The upper arm: exporters and advanced manufacturers benefit from global demand for chips, AI infrastructure and green technology. • The lower arm: households face property-related wealth losses, a soft job market and pressure to repay debt. Consumption remains weak as families protect their finances. Factories can thrive even while consumers feel poorer. That leaves Beijing heavily dependent on overseas demand to compensate for weakness at home—and makes a rapid pivot away from exports unlikely. Until Chinese households regain the confidence to spend, the world will keep absorbing the output of China’s factories. Source: Robin Brooks
Imports climbed by 31%, the fastest increase since June, the data showed, picking up from 28.2% in August. Both exports and imports exceeded estimates from a Reuters poll, of 25.5% and 24.5%, respectively. Earlier this year, China’s exports and imports each grew at their fastest pace in five years. A surge in demand for China-made parts for data centers to power artificial intelligence has helped fuel exports, along with stabilization in tensions with the U.S., China’s largest trading partner on a single-country basis. Source: CNBC
China can now borrow ~60% cheaper than the US. And through Panda bonds, foreign nations and corporations can access China’s cheap yuan funding. Brazil is preparing its first Panda bond... the largest-ever debut by a foreign sovereign. Issuers can raise yuan and use it directly to buy Chinese goods and fund operations in China instead of first raising USD. Source: Lukas Ekwueme @ekwufinance
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