China’s Uncertainties Won’t Stop Renminbi’s Rise

Recent data releases and the transition to new political leadership have created some uncertainty about China’s short-term economic outlook. While positive growth surprises are unlikely in 2013, we still think nothing can stop the long-term appreciation of China’s currency, the renminbi (RMB).

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Shadow Banking Darkens China Policy Outlook

Chinese government measures to cool the property market last week could be the start of a broader tightening campaign. The “shadow banking” industry might be next in line for action.

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No Need to Fear China’s Housing Crackdown

Stuart Rae and John Lin New measures to cool China’s housing market have triggered fresh volatility and stock declines across Asia. But we think the latest government moves won’t derail the long-term drivers of Chinese real estate growth.

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Equities Set to Break Out of the Bear Trap

In the face of significant uncertainties, US and global equities rallied in 2012 and at the start of the New Year. We think there might be more to come as stocks break out of the bear trap.

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New Leaders, Same Steady Hand on the Chinese Economic Tiller

The media spotlight is on China’s new president, Xi Jinping. But investors should be watching Li Keqiang, the new premier. It’s Mr Li who will be responsible for combating the country’s slowing economic growth and, with it, potentially the fate of the world’s economy.

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Japanese Carmakers Can Surmount Backlash from China Dispute

Takeo Aso and Atsushi Horikawa The territorial dispute between China and Japan is clouding the outlook for Japanese automakers. But we think that bilateral business pragmatism will eventually trump the current political tensions.

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Defying the Crowd on Chinese Stocks

Slowing economic growth, uncertainty about government policy and disappointing returns have made equity investors wary of China. In other words, it’s a perfect time to hunt for investment opportunities.

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Déjà vu With a Difference
in China’s Investment Drive

Infrastructure investment in China is an important indicator of demand and a key signal of Beijing’s ability to revive the economy. This week, a flurry of news suggested that the rebound in infrastructure investment is gathering momentum. 

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Five Reasons Why We Think the Renminbi is Still a Buy

The renminbi (RMB) has strengthened significantly in recent years. We don’t think it will continue to appreciate at the same pace, and in the very short term we may see two-way volatility in the exchange rate. But we are still positive on the currency, especially in the medium term.  Here are five reasons why.

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Could Asia Come to the Rescue in a Global Double Dip?

Expansionary policy in Asia helped lead the world out of its slump after the 2008 financial crisis. While the region doesn’t have as much room for manoeuvre as it did then, we think it has ample firepower to deploy if the global economy slides into recession again.

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