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
China's real GDP is now further below its pre-COVID trend than after the 2008 crisis
Will they be tempted to opt for more mercantilism (and expansionism)? Source chart: Robin Brooks
Japan is expected to be short 11 million workers by 2040
Source: Win Smart, FT
