2023 feb 26
Investors project upcoming of National people’s Congress sanguinely.
CSI 300 rose up nearly 5% this year, contrary to HSCEI.
Somethings to be expected as catalysts from NPC
Whereas, Hong Kong listed shares (Hang Seng China Enterprises Index)are more exposed to global liquidity flow and have tendency to underperform when Fed is tightening.
John Cheng+ Get Alerts,(2023 Februrary 26) China’s upcoming Congress Spurs optimism on Mainland Stocks. Bloomberg
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Hong Kong wants to reclaim it’s old glory as an Asia’s premeir financial hub, but it is not going well due to a scarcity of workers in the aviation industry.
It is driven by the thorough curbs during the covid restrictions and and old age of Hong kong citizens.
One solution is bringing workers from mainland China and giving them special work permits.
However the recovery is likely to take long.
Danny Lee + Get Alerts, (2023 Februrary 26), Hong Kong Airline Worker Shortage Hits City’s Push to Reopen. Bloomberg.
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Since the bulk of Fed’s interest rate is over, investors think that the dollar is on the way down.
A weaker dollar will bring relief to the world economy.
However, no one is betting on full reveral of the dollar strength that gained over the past two years because fed is likely to keep its rate high as inflation lingers at high level.
However, it’s now on its pick.
Ruth Carson + Get Alerts( 2023 February 25), The World’s Most painful Trade is Finally Ending as Dollar Peaks. Bloomberg.
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Europe’s initial hostility got waned of IRA( Inflation Reduction Act)in light of assessment that clean technology can bring positive effects those are equal to or surpass some of the benefits.
Instead, they are changing their eyesight to China as a potential threat.
EU has a green trade tool CBAM which is a regulation putting a levy on emission intensive imports.
At first EU leaders lashed out Us when this law was passed saying that they are lurring green industries .
However, it eventually became an opportunity to end Europe’ s energy dependence on Russia. Therefore, they decided to highlight EU’s own messive spending.
Richard Bravo + Get Alerts,( 2023 February 26), Europe Banks on Its €72 billion to counter Biden’s Green payouts. Bloomberg.
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Russia’s invation of Ukraine hastened a global transformation and a huge worldwide inflation.
EU has imported more than made up for the decline in Russian energy imports from other countries.
Clara Ferreira Marques and David Fickling ( 2023 February 26) The year that Redrew the Energy Map. Bloomberg.
RECAP
China’s economy seems to be prospective.
Hongkong is running out of airline workforce.
Dollar is on it’s peak. The pressure on intrest rates seems to go down.
Eu Started to see Inflation Reduction Act as an opportunity to claim energy independence from Russia. Put 72 billion euros.
Russia’s invation of Ukraine hastened a global transformation, and a huge world wide inflation.