ASHS News and Press, Xtrackers Harvest CSI 500 China A-Shares Small Cap From 09/29/22

Summary Near-term, inflation will remain elevated. We anticipate at least another 100–150 b.p. of tightening from major central banks in the next few months. There are already signs of an economic slowdown globally, but household finances are robust, corporate balance sheet...

Summary China’s official August retail sales and industrial production figures beat consensus expectations. Overall economic growth has softened, escalating war tensions in Ukraine continue to plague markets everywhere and China’s property sector still poses a drag. ...

Summary Chinese companies established an upstream presence in recent years through a buying spree of stakes in mines around the world. The growth of CATL and BYD into global giants within two decades encapsulates the dynamism of EVs in China. China’s leadership in EV ad...

Summary We believe it is unlikely that Fed Chair Jerome Powell will navigate a pivot to a less-hawkish stance before early in 2023. We expect China to grow at a meager 2%-3% pace in 2022, with the potential for these risks to bleed into 2023, as a slowing developed-market consumer...

Summary Following a decade of turbocharged outperformance in the early 2000s, emerging-market stocks have been mired in a protracted losing streak versus their developed-market peers. Both developed and developing equity markets have been grappling with the extreme economic disloc...

Summary Among other central banks, China’s has a relatively high degree of freedom. Like China’s economy, the PBoC’s monetary policy principle has evolved to be part market-driven, part discretionary-policy-driven. With the Fed raising rates, China’...

Summary On 16 August 2022, President Joe Biden signed into law the IRA. The COVID-19-related global supply chain disruptions, extreme weather events, rising inflation, and the Russia-Ukraine crisis have pushed the cost of capital to record highs. Meanwhile, in China, surging c...

Summary A global recession is likely, with at least slower economic growth virtually certain. The tightening is not a mistake, but in most cases it’s coming too late, which means more economic damage than it had begun earlier. Businesses selling to China can expect lowe...

Summary Recognizing that high inflation will not quietly go away, the world's major central banks are toughening their policies. Gradualism has given way to super-sized interest rate increases and a clearer resolve to restrain actual and expected inflation, despite adverse economi...

Summary The effects of volatility in 2022 have been felt by investors globally — however, there may be opportunities to be selective within emerging markets. Accessing less-volatile stocks in emerging markets through minimum volatility ETFs may be attractive as a way to mai...