JHancock Greater China Opportunities A
Did China’s Consumer and Producer Prices Rise in April?
In April, China’s food prices rose 7.4% YoY (year-over-year), while nonfood prices edged up 1.1%. Pork prices rose sharply by 33.5% YoY and accounted for 0.8% of CPI (consumer price index) growth.
China’s Consumer Price Index Rises: What Does This Mean?
In March, China’s consumer price index rose by 2.5% YoY (year-over-year)—the same growth seen the month prior.
Can the SSE Composite Index’s Manufacturing PMI Keep Expanding?
China’s official manufacturing index, the SSE Composite, expanded in March, indicating a slight recovery in the manufacturing sector following stimulus.
Why China’s CPI Data Were Stronger in February
In February, China’s CPI (consumer price index) rose 2.5% YoY—the largest rise since July 2014. It was also higher than the 1.8% YoY rise in January.
Why China’s Exports and Imports Fell Sharply in January 2016
Some analysts believe that the unexpected drop in foreign trade was mainly due to a change in the timing of the Lunar New Year.
Why Fund Managers Think Currency Devaluation Is Likely for China
At Market Realist, we believe currency devaluation is the most probable path for China, although it would create tremors in global financial markets in the short term and would bring down China’s foreign reserves drastically.
China’s December Exports and Imports Were Better than Expected
According to China’s General Administration of Customs, China’s exports fell 1.4% year-over-year in December 2015, compared to a fall of 6.8% in November.
Company & Industry Overviews
SSE Composite Index’s Performance from December 16–December 23
The Shanghai Stock Exchange (SSE) Composite Index rose 3.4% from December 16–December 23. It closed at 3,636.09 points as investors anticipated that China may introduce reforms to boost the real estate sector.
China’s PPI Data Indicate Continued Deflationary Pressure
In October, China’s PPI for manufactured goods fell 5.9% YoY as manufacturers resorted to price-cutting due to weak demand.
China’s Retail Sales Rose in October
China’s retail sales data continue to surprise the market. Its total retail sales of consumer goods rose 11.0% YoY to 2.8 trillion yuan in October.
Ray Dalio’s 3 Rules of Thumb and the Road Ahead for China
Chinese policymakers should try to implement Ray Dalio’s three rules of thumb as closely as possible to get the country’s economic growth back on track.
Analyzing China’s Leverage and Deleveraging Process
“Leverage” means borrowing funds for investment purposes. It creates short-term and long-term debt cycles. Short-term debt cycles typically last for 5–8 years.
How Are China’s Interest Rates Moving?
China’s Central Bank slashed its interest rate again to increase the amount of money flow in the economy. China’s Central Bank devalued the yuan in August.
Analyzing China’s Transition to a Consumer-Driven Economy
China’s transitioning from an export-driven economy to a consumer-driven economy in its quest for complete autonomy from outside forces like the US.
Westpac MNI Consumer Sentiment Indicator for China Up in September
The Westpac MNI China Consumer Sentiment Indicator rose 1.5% to 118.2 in September—the highest level since May 2014—from 116.5 in August.
Caixin China Composite PMI Falls at Fastest Rate since Early 2009
The Caixin China Composite PMI data, which covers both manufacturing and services, pointed to a renewed fall in overall Chinese business activity in September.
China’s Official Manufacturing PMI Rises in September
China’s official manufacturing PMI reading for September rose marginally and came in at 49.8 compared to August’s reading of 49.7.
Slowing Chinese Economy Raises Speculation about Global Growth
With the slowdown in the Chinese economy, achieving a gross domestic product (or GDP) growth rate of around 7% in 2015 seems difficult. There are also rising concerns of a slowdown in the world economy.
Flash Caixin/Markit Reading: Manufacturing Fell Again in September
China’s flash reading of the Caixin/Markit Manufacturing PMI stood at 47 in September. It was weaker than expected. It was below August’s final of 47.5.
China’s Industrial Production Data for August 2015
China’s industrial production data were weaker than expected and grew by 6.1% year-over-year, or YoY, in August.
Performance of SSE Composite Index for the week of September 18
The SSE Composite Index fell 3.2% week-over-week and ended at 3,097.92 points on September 18, 2015.
What Are China’s CPI, PPI, and Debt Data Indicating?
China’s CPI rose to 2% in August year-over-year, mainly due to higher food prices, especially pork, and not due to an improvement in economic activity.
Surprise Yuan Devaluation and the Consequences
The yuan devaluation may provide little help in boosting exports. The People’s Bank of China (or PBoC) surprisingly devalued the yuan by nearly 2% against the US dollar on August 11.
Company & Industry Overviews
Turbulence in China’s Stock Market
Due to recent stock market turbulence in China’s stock market, the SSE (Shanghai Stock Exchange) Composite Index was down 22.7% month-over-month and ended at 3,200.23 points on September 11.
How Is the Chinese Economy Performing?
The uncertainty regarding the Chinese economy is increasing investor fears of a global slowdown.
Caixin China Manufacturing Purchasing Managers’ Index Hits 47.3
In August, the Caixin China Manufacturing Purchasing Managers’ Index reached a low of 47.3, up slightly from the flash reading of 47.1 but down from 47.8 in July.
Insights from China’s Manufacturing Purchasing Managers’ Index
China’s official manufacturing Purchasing Managers’ Index reading for August came in at 49.7 compared to 50.0 in July due due to sluggish client demand and a decline in new domestic and export orders.
China-Focused Mutual Funds: Performance as of September 2
In this article, we’ll compare the performance of four China-focused mutual funds. China’s stock market crashed on August 24, 2015, and the effect of the crash is clearly visible in their one-month returns.
What Are the Portfolio Compositions of FHKCX and JCOAX?
The Fidelity China Region Fund Class C (FHKCX) and the John Hancock Greater China Opportunities Fund Class A (JCOAX) benchmark their performance to the MSCI Golden Dragon Index.
How Have China-Focused Mutual Funds Performed?
In the one-month period ended August 4, 2015, each of the four funds we’re covering in this series posted negative returns due to the stock market crash that spread from the end of June until July.
Why the Chinese Stock Market Meltdown Is Just the Tip of the Iceberg
The Chinese stock market meltdown is just one of the indicators of how fragile the Chinese economy is.