Category: China & HK

Posted on

China buys its banks – macrobusiness.com.au

Central Huijin Investment Ltd, an arm of China’s sovereign wealth fund, bought shares in four major Chinese State-owned banks on the secondary market on Monday, the company told Xinhua.

The four banks include the Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China (ABC), Bank of China (BOC) and China Construction Bank (CCB), according to the company.

The move is aimed at supporting the steady operation and development of major financial institutions and stabilizing their stock prices, the company said.

via China buys its banks – macrobusiness.com.au | macrobusiness.com.au.

Could be the first step in a bailout.

Posted on

DJ Asia update

Dow Jones India 30 Titans index displays a bullish divergence on 13-week Twiggs Money Flow, suggesting reversal to an up-trend. Breakout above 166 would complete a double bottom.

Dow Jones India 30 Titans

Dow Jones Singapore Index advanced cautiously towards the first line of resistance at 218. 21-Day Twiggs Money Flow holding below zero indicates medium-term selling pressure. Expect the primary down-trend to continue. Reversal below 202 would confirm.

Dow Jones Singapore

Japan is closed but South Korean buyers also displayed caution with narrow gains while 21-day Twiggs Money Flow again holds below zero.

Dow Jones South Korea

Dow Jones Shanghai index edged lower after resuming trading Monday. Declining 13-week Twiggs Money Flow indicates strong selling pressure.

Dow Jones Shanghai

Dow Jones HongKong index formed a doji star indicating hesitancy. Reversal below 340 would warn of a down-swing to 300. 63-Day Momentum declining below zero suggests a strong down-trend.

Dow Jones HongKong

Posted on

IMF stress tests China/Australia bust – macrobusiness.com.au

I don’t wish to be too alarming. These are stress tests and scenarios not yet reality. But, there is logic in the thought that we currently face the possibility of the final two scenarios happening simultaneously. That is, a Western recession triggered by European and US austerity (not to mention financial tumult) and a Chinese real estate pop.

via IMF stress tests China/Australia bust – macrobusiness.com.au | macrobusiness.com.au.

Posted on

Bernanke criticises China over currency – FT.com

The chairman of the US Federal Reserve has accused China of damaging prospects for a global economic recovery through its deliberate intervention in the currency market to hold down the value of the renminbi.

…..“Right now, our concern is that the Chinese currency policy is blocking what might be a more normal recovery process in the global economy,” he said. “It is to some extent hurting the recovery”.

via Bernanke criticises China over currency – FT.com.

Posted on

HK and China weaken

The Hang Seng index is falling steeply, with 13-week Twiggs Money Flow below zero warning of selling pressure. Target for the current-down-swing is 16000*.

Hang Seng Index

* Target calculation: 19 – ( 22 – 19 ) = 16

The Shanghai Exchange is closed for Chung Yeung Festival, but the Shanghai Composite Index was testing support at 2350 on Friday. Failure of support would offer a long-term target of 1800*.

Shanghai Composite Index

* Target calculation: 2400 – ( 3000 – 2400 ) = 1800

Posted on

China’s African Mischief – Yuriko Koike – Project Syndicate

Since 2000, China has actively courted Africa’s unstable and dictatorial countries with offers of aid and a refusal to back United Nations sanctions against them. Indeed, China has blithely entered into business with African countries that Europe and America refuse to engage with, owing to sanctions.

…..China has chosen a high-risk path – ignoring human rights and violating UN sanctions – to secure the energy and other resources needed to sustain its economy’s rapid growth. It is a choice that neither befits one of the permanent members of the Security Council, nor demonstrates China’s readiness to be a responsible stakeholder in the international community.

China’s willingness to arm and defend African dictators, even in the teeth of UN sanctions, as in Libya, undermines its claim to a “peaceful rise.” Given China’s Libyan duplicity, the world should now determine whether it is a country that obeys international rules only when doing so suits its interests.

via China’s African Mischief – Yuriko Koike – Project Syndicate.

Posted on

China, Hong Kong continue down-trend

Dow Jones Shanghai Index continued a down-swing Wednesday to test the lower border of its downward trend channel. 21-Day Twiggs Money Flow declining below zero warns of strong selling pressure.

Dow Jones Shanghai Index

The Shanghai Composite index is headed for support at its target of 2350. 63-Day Twiggs Momentum declining below zero reminds that we are in a primary down-trend. Expect some retracement or consolidation at support. Failure would warn of a decline to 2000*.

Shanghai Composite Index

* Target calculation: 2350 – ( 2700 – 2350 ) = 2000

Hang Seng Index found resistance at 18000 on Wednesday after rallying earlier in the week. The primary trend is down and 13-week Twiggs Money Flow (below zero) warns of selling pressure. Resistance at 19000 is expected to hold, followed by down-swing to 16000*.

Hang Seng Index

* Target calculation: 17500 – ( 19000 – 17500 ) = 16000

Posted on

S&P warns on Chinese property – macrobusiness.com.au

Chinese developers face an “increasingly severe” credit outlook, which may force them to cut prices and turn to costlier funding sources as sales weaken, Standard & Poor’s said.

A 30 percent decline in sales may leave many developers facing a liquidity squeeze, S&P said after conducting stress tests of the nation’s real estate companies…..

“The worst isn’t over for China’s real estate developers,” S&P analysts led by Frank Lu wrote in a report today. “Developers are bracing themselves for slower sales and lower property prices ahead.”

via S&P warns on Chinese property – macrobusiness.com.au | macrobusiness.com.au.

Posted on

Iron forward market softens – Phat Dragon | Westpac

The iron ore market is beginning to exhibit some signs of modest
unease, with 3mth forwards giving up significant ground while spot
has moved about 5% lower. From an export profitability perspective,
falls in the Australian dollar and Brazilian real have more than
covered the US dollar spot decline. Even so, to Phat Dragon’s eye
a cyclical correction in the ferrous metals sphere appears to be
underway and price expectations should be ratcheting downwards.

Excerpt from Westpac’s Phat Dragon weekly chronicle of the Chinese economy

Powered by WordPress / WordPress Maintenance Service By Website Helper