3 May

Is China’s Debt Concern Overblown?

WRITTEN BY Sarah Sands

Is China’s debt concern overblown?

According to a Bloomberg survey, Qu Hongbin, an economist at HSBC Holdings (HSBC), largely agrees with George Soros’s statement. He wrote that China’s debt concern is overblown and that policy easing isn’t as bad as investors think. He also pointed out that Soros already warned about a 2008-style crisis at a panel in Washington in September 2011.

Is China’s Debt Concern Overblown?

China’s economic indicators improved in recent months

The recent Chinese growth drivers are changing, reflecting shifting trends in the Chinese economy. Industrial output, retail sales, new yuan loans, and fixed-asset investments all improved in March. They exceeded estimates. These indicators show that the Chinese economy (FXI)(ASHR)(YINN) is accelerating. Industrial production recovered to 6.8%—the strongest in nine months. Fixed-asset investment growth rose 10.7%.

According to Qu Hongbin, since debt is increasing, volatility is also increasing. But if growth drivers continue to improve in the next few months, then this emerging economy’s (EEM)(VWO)(EDC) outlook may change.

Performance of China-focused mutual funds

The Neuberger Berman Greater China Equity Fund – Class A (NCEAX), the Matthews China Fund – Investor Class (MCHFX), the Guinness Atkinson China and Hong Kong Fund (ICHKX), the Oberweis China Opportunities Fund (OBCHX), and the John Hancock Greater China Opportunities Fund – Class A (JCOAX) returned 8.6%, 4.6%, 8.2%, 4.3%, and 9.8%, respectively, over three months.

To learn more, read Can China’s New Growth Drivers Wake the Dragon?

Latest articles

This morning the US stock market opened on a strong bullish note after the Federal Reserve hinted at a cut in the interest rates yesterday. Also, renewed US-China trade optimism helped the S&P 500 Index reach new heights today. The world’s two largest economies have started trade negotiations once again ahead of US President Donald Trump and Chinese President Xi Jinping’s meeting next week.

Extreme value retailer Grocery Outlet Holding (GO) announced on June 19 that it had priced its IPO at $22 per share, well above its target price range of $18–$19. Initially, the company had planned to sell its shares in the range of $15–$17.

20 Jun

NIO Stock Is Soaring, Tesla Continues to Fall

WRITTEN BY Jitendra Parashar

On June 20, NIO (NIO) is trading on a bullish note for the fourth consecutive session. At 11:00 AM ET, NIO stock has risen 8.1% at $2.96. Earlier on June 20, the stock rose above the psychological level of $3.00.

20 Jun

Will Refiners’ Earnings Plunge in 2019?

WRITTEN BY Maitali Ramkumar

Wall Street analysts expect refining firms' earnings to fall in 2019. Delek US Holdings (DK) and Valero Energy’s (VLO) earnings are estimated to fall less than 10% in 2019. However, the EPS of Marathon Petroleum (MPC), HollyFrontier (HFC), and Phillips 66 (PSX) are expected to fall 20%–40% this year.

After remaining tepid for the first four months of the year, gold prices have taken off in a big way. The initial impetus was provided by a tweet made by President Donald Trump on May 5, which revived trade tensions in a big way.

20 Jun

How Are Charter’s Revenues Trending in 2019?

WRITTEN BY Ambrish Shah

In the first quarter, Charter Communications (CHTR) reported total revenues of $11.2 billion—a rise of 5.2% year-over-year and $7 million ahead of the consensus estimate.