China’s Reforms Open New Path to Equities

Stuart Rae (pictured) and John Lin For investors in China equities, there have traditionally been two ways of approaching the market: through expensive growth stocks, or risky contrarian plays. Now, thanks to China’s reforms, there’s a third way which may offer a better balance of risk and return.

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China’s Property Market: The Risks for Banks

By Hayden Briscoe (pictured) and Hua Cheng of AllianceBernstein (NYSE:AB) Despite worries about a collapse in China’s property market, we think the financial system will navigate the coming credit cycle if banks can buy time to resolve loan problems—and receive government support if needed.

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China’s Property Market: Policy Is the Real Risk

By Hayden Briscoe (pictured) and Jenny Zeng of AllianceBernstein (NYSE:AB) Concerns about a possible collapse in China’s property market continue to grow. However, our research suggests that fundamentals are more robust than many think. The biggest danger lies in the potential for policy mistakes.

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Could Reforms Lead to Asia Rerating?

Asia’s three biggest economies—China, India and Japan—are carrying out reform programs. Taken individually, these may do little to excite investors’ imaginations, but taken together, they become much more interesting.

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Can Japanese Stocks Defy Sluggish Exports?

As Japanese equities struggle to make headway this year after an explosive 2013, new questions are being asked about the economy’s direction. From an investor’s perspective, we think the sluggish export trend may be masking a more positive environment for stocks.

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Is Asian Turbulence a Win for China?

While this week’s sell-off in Asian currency and bond markets does not, as yet, amount to a crisis in our view, it is obviously cause for concern. At this stage, we think two outcomes are likely: one is that central banks and supranational funding agencies will work together to avert a full-blown crisis; the other [...]

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China Comes Closer to Convergence

An announcement in late July by the Hong Kong Monetary Authority (HKMA) may prove to be a milestone we look back on as the trigger for the next step in the evolution of the offshore renminbi bond market. Effectively, the People’s Bank of China (PBOC) has underwritten liquidity in the offshore renminbi.

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Japan: Firing the Third Arrow

Japanese Prime Minister Shinzo Abe’s ability to implement his agenda is politically unfettered. But can he deliver, and will his policies work? We remain cautiously optimistic.

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For Abenomics, the Hard Part Is Still to Come

Prime Minister Shinzo Abe’s “Abenomics” program, designed to revive Japan’s economy, was a big success in its first five months, easily surpassing low expectations. But it’s drifted off course since it began, and the going is sure to get tougher from here. Still, it’s too early to write off this policy experiment.

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Japan and the Euphoric Volatility Trap

Michael DePalma (pictured) and Arnab Nilim When equity markets are buoyant and optimism abounds, fears of volatility tend to subside. But recent events in Japan remind us that euphoria itself can generate turbulence.

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