Salient to Investors: Ding Zhijie at the University of International Business and Economics said: China has noticeably reduced purchases of dollars from local banks to allow commercial banks to trade among themselves, which may cap China’s foreign-exchange reserves and consequently its demand for US government debt. China’s official foreign-exchange reserves will be stable
READ MORE... →Salient to Investors: Wang Zheng at Jingxi Investment Mgmt said investors have no confidence in long-term growth prospects and the government is doing little to reverse the situation. The Shanghai Composite trades at 9.5 times estimated earnings for 2012, versus the 17.7 average multiple since 2006. Chongkyu Juhn at Samsung Securities said China’s stocks
READ MORE... →Salient to Investors: Hedge funds et al increased combined net-long positions for the first time in 7 weeks. James Paulsen at Wells Capital Mgmt sees many reasons why we are turning the corner, and says growth in the US and China supports being in commodities. Societe Generale said Chinese manufacturers are seeing the light at the
READ MORE... →Salient to Investors: Deng Wenyuan at Soochow Securities said the economy may only show real improvement from Q2 or Q3 2013. The Shanghai Composite trades at 9.6 times estimated profit for 2012 versus the 17.8 average since 2006. Hao Hong at Bank of Communications said stocks are due for a technical bounce but the
READ MORE... →Salient to Investors: Bill O’Neill at Merrill Lynch Wealth Mgmt said: He owns gold for diversification and catastrophe insurance, and expects prices to rise above $2,000 in 2013. Prospects for industrial metals are dim due to a lack of clarity on demand from China, their inventory levels. Global growth will improve slightly next year to 3.2
READ MORE... →Salient to Investors: Chinese wind-turbine makers have broken into the South American market, the world’s fastest-growing, by offering government-backed loans at interest rates as much as 50 percent lower than local offerings. Read the full article at http://www.bloomberg.com/news/2012-11-20/china-grabs-share-in-latin-america-wind-with-cheap-loans.html
READ MORE... →Salient to Investors: Lian Ping at Bank of Communications said potential defaults of property trusts must be stopped from spreading nationwide – trusts have become too large to fail. Trusts target people with at least 1 million yuan to invest and are the fastest-growing segment of China’s shadow banking. Tao Wang at UBS,said
READ MORE... →Salient to Investors: Koji Fukaya at Office Fukaya said stock declines are hurting risk sentiment and investors are selling Asian equities, putting downward pressure on regional currencies. Fukaya said money will continue to flow into emerging markets and their currencies will recover in the medium to long-term. Saktiandi Supaat at Malayan Banking said asian currencies will remain volatile
READ MORE... →Salient to Investors: Victoria Mio at Robeco Hong Kong said China’s leadership change removes the biggest overhang for the nation’s equities as the new government is determined to carry out reforms. Mio said implications on the economy are neutral near term as China is expected to maintain the current monetary and fiscal policies. Barclays
READ MORE... →Salient to Investors: Stronger housing demand and hiring in the US and accelerating factory output and retail sales in China is providing international growth as Europe and Japan stagnate. Jim O’Neill at Goldman Sachs Asset Mgmt said improving China and the US is extremely good news. Tim Drayson at Legal & General Investment
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