China Factory Activity Expands Again, Private Survey Shows
Source: Bloomberg, C.Barraud
China's holdings of US Treasuries continue to move in a straight line lower
Their holdings of US Treasuries have declined by $300 billion since 2021. Currently, China holds just under $800 billion of US Treasuries, levels not seen since 2009. As interest rates are peaking, the foreign private sector has been slowing purchases. Also, as China faces increasing economic headwinds, it is likely this trend resumes.
Chinese Stocks have fallen to a P/E Ratio of just 8, their lowest valuation in a decade 👀
Source: Barchart, Bloomberg
A Hong Kong court has ruled that Evergrande, China's largest real estate developer, must be liquidated
The stock is now down another 20% today on the news and trading has been halted. Evergrande is now considered the most indebted property developer in the world. This comes at a time when China's HY Real Estate Index is down 85% in 2 years. China is also preparing hundreds of billions in economic stimulus along with considering a ban on short selling. Source: The Kobeissi Letter
This is mind-blowing!
$GOOGL $MSFT $AAPL Source: Bespoe
Depressed China
China as % of global net exposure is at the lowest levels in "modern times". Source: Goldman Sachs, TME
Bridgewater tells investors it is “moderately bullish” on Chinese stocks as the prolonged rout made valuations attractive, a call made days before the country’s latest stock meltdown
Source: Bloomberg
Taiwan semiconductor $TSM, the world's largest contract chip manufacturer, forecast 2024 revenue to grow more than 20% thanks to booming demands for high-end chips used in AI applications
Taiwan Semi's main customers include AMD $AMD, Nvidia $NVDA, Qualcomm $QCOM, Intel $INTC, Apple $AAPL, and Broadcom $AVGO. Source: Jesse Cohen
