ASHS News and Press, Xtrackers Harvest CSI 500 China A-Shares Small Cap From 09/28/21

Fed Chair Powell indicated in his FOMC press conference last Wednesday that he wants the Fed to be out of the QE business by mid-year 2022. That implies a rate of tapering of bond purchases by $15-20 billion per month from the present rate of $120 billion per month. Powell’s me...

The bankruptcy of the Chinese real estate company Evergrande is much more than a “Chinese Lehman”. The implications of an Evergrande collapse are far greater than what investment banks tell us. Evergrande is not an anecdote, it is a symptom. For further details...

As Q3 winds down and Q4 begins, the broad investment climate is being shaped by the turning of the monetary cycle. The Fed has already acknowledged that the economy moderated in July and August, and it still went ahead with its signal that it will begin tapering in Q4. The eurozon...

Market implications from the onset of bond-buying taper. Is the worst of the Evergrande crisis over? Will supply chain woes significantly add to inflationary pressures? For further details see: China Crisis, Fed Taper, Supplies Chain Squeeze: Noise Or Notable?

Evergrande and its financial instruments are under pressure. China’s property developer deleveraging has been a focus area for several years. While the very near term is likely to remain volatile, a potential Beijing-driven resolution, when outlined, could remove uncertaint...

The market doesn’t appear to be underestimating risks for Evergrande. Despite very bearish conventional wisdom and recent conservative positioning in our portfolios, we are now beginning to consider increasing exposure to these widening opportunities. Therefore, despite ver...

Chinese government has generally had some idea of how much risk Evergrande and other highly leveraged real estate companies pose since last year. Equity holders will most likely be wiped out, with holders of bond and wealth management products taking significant haircuts. Fundamen...

China is in the middle of a tightening regulatory cycle, implementing anti-monopoly, data security and industry-specific regulations. The recent regulatory changes were announced at a time when China was seeing a slowdown in its economy and resurgence in COVID-19 cases, which has furt...

Shares in the world’s second-largest economy continue to tumble, exacerbated in recent days by the liquidity crisis in Evergrande. A key test arrives this Thursday (Sep. 23), when Evergrande is scheduled to make an interest payment on one of its bond series. What is clear i...

Beginning with what is perhaps the best indicator of growth potential in the real economy, as opposed to just the financial economy, the G3 credit impulse is now firmly in negative territory after peaking in the latter stages of 2020. Turning to manufacturing, building permits for new...