Emerging & Global Markets Catch Up With Reality (Krane Shares)
[NOTE: This is from mid-November – so its already dated but the points below are worth noting.]
- First, we have seen very little internet regulation over the summer, confirming a possible end to reforms.
- Second, the China Securities Regulatory Commission (CSRC) and the Securities Exchange Commission (SEC) have signed a statement of protocol allowing the Public Company Accounting Oversight Board to conduct full audit reviews of US-listed Chinese companies, which should lift investor sentiment toward China.
- US officials are currently in Hong Kong auditing the data of more than 160 Chinese companies. We believe all the major internet companies will pass the test and help to establish a path to the final agreement.
- Third, we believe the conclusion of the National Party Congress (NPC) on October 22nd,5 may allow leaders to focus on supporting the real economy once again and potentially pursue more easing of China’s zero COVID policy.
- Fourth, CSPC Pharma, China’s third largest pharmaceutical company, announced favorable numbers for their mRNA COVID vaccine, potentially leading to emergency approval as soon as November.
- Lastly, for the first time since 2019, China brought back the Pledged Supplementary Lending (PSL) program in October. The program was created in 2014 and is meant to capitalize policy banks to support the property sector. The return of the discontinued program indicates that China is looking to bring the real estate sector under control in the near term and protect against systematic risk. READ MORE
- China is No Longer Just Any Emerging Market — It Has Become Its Own Beast (CNBC)
- Five Things You Need to Know About Foxconn’s Shanghai IPO (The Asset)
- Variant View: China’s Zero-COVID Policy is Dead (Asian Century Stocks Substack)
- Macro Tailwinds That Could Propel China’s Internet Sector (KraneShares)
- Fall 2021 China Internet Earnings Report: Baidu on AI, Autonomous Driving, & An Open Internet Marketplace (KraneShares)
- Push for US-listed China Firms to Disclose Interference Risks (The Standard)
- China Will Not Be Able To Offset Its Property Bubble Easily (Daniel Lacalle)
- Macquarie’s Le Cornu Likes Korean Cosmetics, Chinese Insurance Stocks & Macau Casinos (Bloomberg)
- While “Delisting” Gets Headlines, The SEC Proposes Orderly Solution (KraneShares)
- ‘Once-in-a-lifetime Opportunity’: How a Mass Lockdown at the World’s Biggest iPhone Factory is India’s Big Chance to Beat out China as Apple’s Favorite Supplier (Fortune)
- Understanding China’s Recent Moves in Its Capital Markets (Ray Dalio)
- China to Exert Greater Financial Discipline This Year (BNP Paribas AM)
- China Internet Flash Report: 2015 & Beyond + an Overview of 2014 Results (KraneShares)
- Tencent, Alibaba and the Fight to Control China’s Online Ecosystem (Nikkei Asian Review)
- China Health Care: A Rediscovered Sector Keeps Its Momentum (KraneShares)
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