Chinese stocks are trading near all-time lows relative to GDP, while US stocks are trading near all-time highs relative to GDP
Perhaps for good reason... but that's a massive spread. Source: Swordfishvegetable
Citi, JPMorgan, BofA and Morgan Stanley have collectively reduced their exposure to China by about a fourth since 2020
Source: Lisa Abramowicz, Bloomberg
China’s central bank assets have surged by nearly $600B in the last 4 months
In yuan terms, this was the largest 4-month increase in the history of the data. The issue of a bloated government deficit and significant debt is not exclusive to the US; it resonates globally. Source: Tavi Costa, Bloomberg
Alibaba $BABA Institutional ownership jumped 100% in the month of December '23. As the price fell to its 52 Week Low, Institutions bailed in
Source: The long investor
Tencent's stock crashes 16% in minutes after Beijing released draft guidelines aimed at curbing incentives that could lead to excessive gaming and spending
Tencent is China's largest public company and the drop erased ~$55 billion of market cap. This also marks the biggest one-day drop for the company since 2008. Note that NetEase sank by as much as 28% to HK$117.30, breaking briefly below a key technical support offered by a February low at around HK$120.70. In mid-afternoon trade, NetEase shares pared losses to trade down about 20% at HK$129. Source: The Kobeissi Letter, CNBC
Chinese stocks made up 24.7% of the MSCI Emerging Markets index by capitalization, down from 40% three years ago
Meanwhile, India's weight has doubled... Source: Gavekal
Japan | BOJ Avoids Rate Hike Signal as It Stands Pat, Driving Yen Lower – Bloomberg
As expected, no change from the BoJ this morning on rates or the YCC. The vote was 9-0, in favor of no change. There wasn’t even a hint of change to the policy statement. No change in language around wages and inflation. The Japanese Yen weakened considerably on the initial press release. Nikkei 225 is up +1.5% Source: Ayesha Tariq, Bloomberg
BREAKING: Chinese Equities
Chinese Stocks continue to nosedive and have fallen to their lowest prices in 5 years. Source: Barchart
