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China Market Update
by Andy Rothman of Matthews Asia,
China’s equity markets have steadily declined for weeks, raising a torrent of questions and concerns. Given that China accounts for more global growth than the U.S., Europe and Japan combined, this week Andy Rothman, Investment Strategist at Matthews Asia, answers some of your most pressing questions.
China Market Update
by Andy Rothman of Matthews Asia,
China’s equity markets have been in steady decline for several weeks, raising a lot of questions about the potential impact on the world’s second-largest economy. Given that China accounts for more global growth than the U.S., Europe and Japan combined, this is an important topic for investors.
India's Structural Challenges
by Sudarshan Murthy of Matthews Asia,
India is in need of sweeping reforms in order to realize the full power of its entrepreneurial talent and to ensure social improvements for its poor and middle class. Despite some encouraging efforts, the Modi government may need significant time to carry out such reforms, as its many public institutions are still a far cry from being considered inclusive—meaning they lack such attributes as well-defined property ownership rights, flexible labor policies and all-encompassing political representation.
A Chinese Swap Meet
by Andy Rothman of Matthews Asia,
The new local bond swap program of China’s Communist Party is its latest effort to manage debt. It aims both to make the amount and structure of local government debt more transparent, and to reduce the financing burden of local government debt. Could this be considered a version of quantitative easing or a bailout? Could it lead to local government defaults?
Luxury Spending in China
by Winnie Chwang of Matthews Asia,
Over the past decade, conspicuous consumption has been seen across China and Hong Kong, emerging as a natural by-product of an economy experiencing rapidly rising levels of affluence. Across China, there have been stories of unbelievable extravagance, from diamond-studded smartphone cases to gold-plated sport cars and replicas of homes that resemble the White House. However, these days of excessive spending in China may already have waned. Asia Weekly explores.
Luxury Spending in China
by Winnie Chwang of Matthews Asia,
Over the past decade, conspicuous consumption has been seen across China and Hong Kong, emerging as a natural by-product of an economy experiencing rapidly rising levels of affluence. Across China, there have been stories of unbelievable extravagance, from diamond-studded smartphone cases to gold-plated sport cars and replicas of homes that resemble the White House. However, these days of excessive spending in China may already have waned. Asia Weekly explores.
Diagnosing China's Debt Disease
by Andy Rothman of Matthews Asia,
China suffers from a serious case of “debt disease,” but the treatment and side effects may not be as severe as some expect, and dramatic credit tightening is very unlikely. Debt is concentrated among state-owned firms, while the private firms that generate most of China’s new jobs and investment have already deleveraged. The biggest risk is the high level of debt among real estate developers.
China's First SOE Default: More to Come?
by Teresa Kong of Matthews Asia,
A power equipment maker just became China’s first state-owned company to default on domestic debt. Is this a strategic move by the central government to further liberalize its capital markets, and to reform its state-owned enterprises?
Irrational Expectations
by Andy Rothman of Matthews Asia,
Do we have irrational expectations for the Chinese economy? On the one hand, we asked China to restructure and rebalance its economy, and it has delivered. It shrunk its state sector, and privately owned firms now account for more than 80% of employment and almost all new job creation. Almost all prices are set by the market. Investment growth is slowing and consumption is now the engine of economic expansion. China’s service sector is now larger than its manufacturing and construction sectors.
Implications of a Fed Funds Rate Hike on Asian Securities
by Gerald Hwang of Matthews Asia,
The prospect of a higher U.S. federal funds rate can make U.S. cash and short duration Treasurys look more attractive vs. risky assets. The effect of higher U.S. short rates is felt across all asset classes, regardless of the pattern of cash flows or currency of denomination. We can expect some market reallocation out of risky assets and into risk-free assets. But why does the market seem to fear a wholesale shift out of risky assets and why might that view be unjustified? In the second installment of a two-part series, Matthews Asia Portfolio Manager Gerald Hwang, CFA, examines the ways in wh
China for Sale?
by Robert Horrocks of Matthews Asia,
In recent years, some China watchers have been wondering where the “smart money” is going? How telling are the real estate transactions of the region’s tycoons? And do concerns still exist over the growth in loans to the corporate sector? Matthews Asia’s CIO Robert Horrocks, PhD, explores.
The Coming Chinese Crackup?
by Andy Rothman of Matthews Asia,
Prominent China scholar David Shambaugh has turned bearish on the Middle Kingdom, which offers us the chance to review our own thinking about China’s prospects. As head of the China Policy Program at The George Washington University, Shambaugh is a respected analyst of Chinese Communist Party affairs, so his WSJ op-ed, “The Coming Chinese Crackup,” has received much attention. This issue of Sinology explores how Shambaugh’s view now is an about face from his prior analyses, and why his current arguments may be flawed.
Enjoying the Shade
As commentator Cherian George has said: “The legacy passed down to today’s Singaporeans isn’t one of random opportunism…There is nothing accidental about it.” Singapore’s first prime minister, Lee Kuan Yew, took charge of the city-state, transformed and drove it forward in the span of just a few decades. This week Matthews Asia pays tribute to this “giant of history.”
Key Questions for China Investors in 2015—Part III
by Andy Rothman of Matthews Asia,
In this final installment of a three-part Sinology series, Andy Rothman, Matthews Asia Investment Strategist, answers the question: is China’s property market heading for a crash? He also discusses what he believes are the biggest long-term risks to growth and stability—an absence of the rule of law and trusted institutions.
China’s New Generation of Entrepreneurs II
by Beini Zhou of Matthews Asia,
China has long been perceived to be a breeding ground for business copycats, and has struggled with rampant intellectual piracy. Many businesses there have indeed been founded based on business models that originated in the U.S. or Europe. But what’s been overlooked in recent years is China’s rising “innovation machine.” More favorable government policies toward R&D have helped. This month, Asia Insight takes a look at developments in China’s grassroots-level entrepreneurship.
One Cheer for India: Hip, Hip but no Hooray?
by Sudarshan Murthy of Matthews Asia,
There has been a sense of optimism lately over India’s place in the world, and its markets demonstrated some enthusiasm over the seemingly good chemistry between U.S. President Barack Obama and Prime Minister Narendra Modi. But should investors beware of chasing price momentum?
Key Questions for China Investors in 2015
by Andy Rothman of Matthews Asia,
China raises many questions for investors. Last year, for example, GDP growth slowed to 7.4% from 7.7%, but China still accounted for almost one-third of global growth. Is this a healthy economy or an impending disaster? In the first of a three-part Sinology series, Andy Rothman, Matthews Asia Investment Strategist, addresses some key investor concerns.
Is Your China Glass Half Empty or Half Full?
by Andy Rothman of Matthews Asia,
It's been well-noted that China's 2014 GDP growth was the slowest in 24 years. But following 7.7% growth for the prior two years, 7.4% doesn't feel like a huge slump. And because the base was so much bigger, the incremental increase in the size of China's economy last year was 100% bigger than the increase at a much faster growth rate a decade ago. What are other important perspectives on China these days? Andy Rothman, Matthews Asia Investment Strategist, explores in this issue of Sinology.
Occupy Wall Street in Qing Dynasty, China
by Gerald Hwang of Matthews Asia,
What if a banker's family could be taken as slaves to repay losses arising from the banker's malfeasance? This may seem extreme now but it was part of a system that existed 200 years ago in a China's desolate Shanxi region near Mongolia. This week, Gerald Hwang, CFA, writes about this surprising birthplace for a banking system that served elite citizens and the treasury of the Qing dynasty.
Shades of APEC Blue
by Raymond Deng of Matthews Asia,
During last year's Asia-Pacific Economic Cooperation summit, Beijing revealed stunning blue skies to replace its normally smog-choked atmosphere?a result of intentional government closings of factories and roads. Producing "APEC blue" as it came to be called was a complicated and expensive task. Asia Weekly explores such initiatives in China.
Structural Reforms in Asia
by Sharat Shroff of Matthews Asia,
The global investment community continues to deliberate about the impact of quantitative easing stemming from Europe, and more recently from Japan, as a means to revive domestic demand. Meanwhile, several Asian economies are embarking on a different kind of stimulus, aimed at boosting long-term productivity and investment spending, through structural changes to the underlying economies.
China's One-Child Policy
by Andy Rothman of Matthews Asia,
Last November, Chinas Communist Party announced that it would relax its famed one-child policyone of the most draconian examples of government social engineering ever seen. This is a significant political move, as it represents the Partys decision to withdraw from its citizens bedrooms, restoring a key element of personal freedom that should help rebuild peoples trust in the Party. But what some observers may not realize is that the steepest fall in Chinas total fertility rate (the average number of live births per woman) actually came be
Asia's Deepening Capital Markets
by Robert Horrocks of Matthews Asia,
The drivers of economic growth, the region's small- and medium-sized enterprises, are finally gaining access to capital through alternative funding sources outside of just banks. Retail investors are accessing increasingly diverse products in which to store their savings and build wealth. Institutions are demanding long-dated assets to match their liabilities? Are we finally seeing more stable local demand in Asia's local capital markets?
Reconsidering Asia's Currencies
by Gerald Hwang of Matthews Asia,
The Asian Financial Crisis of 1997-1998 looms like a ghost over any attention to Asian currency risk. But what new considerations are needed now? Given the robust performance of the regions currencies since 1999, Portfolio Manager Gerald Hwang, CFA, explores this topic in a modern context that takes into account the diverse monetary systems, business cycles and development stages of Asias economies.
A New Breed of Robotics
by Kenichi Amaki of Matthews Asia,
Are collaborative robotsindustrial robots made to better work alongside humanslikely to be well-received in the market? How feasible is a car made from a 3D printer? This week Portfolio Manager Kenichi Amaki discusses his findings from the International Manufacturing Technology Show in Chicago.
China: Decelerating but Still Healthy
by Andy Rothman of Matthews Asia,
GDP growth will be just above 7% this year, and slightly slower next year. Despite the negative media headlines, there are no signs of impending doom and Andy Rothman, Matthews Asia Investment Strategist, expects the property market to stabilize in the coming quarters. Strong growth in income and retail sales means China remains the worlds best consumption story.
Protecting Whom?
by Tiffany Hsiao of Matthews Asia,
China has long been accused of protectionist policies that restrict access to many markets.Recently, this has garnered more press attention. But has China really become more confrontational with U.S. business? In todays world, what exactly is protectionism, and who are these protections meant to benefit? This month Asia Insight explores.
Vision 1994
by Mark Headley of Matthews Asia,
Twenty years ago, Paul Matthews decided to launch two Asia ex-Japan mutual funds in the U.S. and create what is today the Matthews Asia Funds. One was a core Asia ex-Japan growth fund with a mid-capitalization bias. The other fund was a unique portfolio with a focus on Asian convertible bonds. Thus began the journey of the Matthews Pacific Tiger and the Matthews Asian Growth and Income Funds.
Awakening Japan Inc.
by Yu Zhang of Matthews Asia,
Japanese Prime Minister Shinzo Abe's first two "arrows" of his expansionary fiscal policies have done well to curb deflation. Now, investors are concerned about Japan's so called "third arrow"the country's growth strategy. Can credible structural reform be implemented to remove impediments to its growth?
Abenomics 2.0
by Kenichi Amaki of Matthews Asia,
The reversal of Japan's equity markets so far this year, have led investors to wonder, "Is Abenomics working?" There are hundreds of components that comprise this economic plan, and among the recent successes has been job creation. However, macroeconomic statistics point to some emerging near-term challenges, including still-muted wage growth. This month Kenichi Amaki takes a look at both current pressures and progress in Japan.
Understanding China's Property Market
by Andy Rothman of Matthews Asia,
One of the biggest misconceptions about Chinas property market is that most buyers are speculators. In fact, the residential market is driven by owner-occupiers, and even many poor Chinese are homeowners; China is a global leader in homeownership with urban ownership rates at 89%. The boom days may be over, but fundamental demand remains healthy. New home prices rose at an average annual pace of 9% over the last eight years, but nominal urban income rose 13% per year. Communist Party leaders do not appear too worried about property; theyve taken only modest steps to support the m
Tennis star Li Na exemplifies China's newfound entrepreneurial spirit.
by Patricia Huang of Matthews Asia,
After advancing to her first grand slam semifinals, Peng Shuai is China's newest late-career surprise at the U.S. Open. Her compatriot, tennis star Li Na, was the first Chinese player to claim a grand slam singles title, and her success has bolstered the sport's popularity back home in recent years. Both players were among the handful of pioneers to break from the country's state-sponsored teams to take greater control of their futures. This week Patricia Huang writes about China's newfound entrepreneurial spirit.
Assessing Corporate Credit Risk in Asia
by Satya Patel of Matthews Asia,
Investing in foreign markets requires a constant questioning of many long-held assumptions that underpin traditional security analysis. This issue of Asia Insight is the first in a series of commentaries to explore the fixed income themes of credit, currencies and interest rates. Given the complexities of Asias fixed income markets, we will examine the many considerations that investors need to take into account to fully appreciate the inherent risks of investing in this market.
Ready to Board the "Through Train?"
by Henry Zhang of Matthews Asia,
What is the significance of the soon-to-be rolled out ShanghaiHong Kong Connect, also known as the "through train?" This pilot program is designed to provide mutual access for equity investors between the Shanghai and Hong Kong exchanges. What will be the impact? While incremental, this could be an important step toward opening China's capital account and aiding in the liberalization of China's currency.
Important Reform Progress
by Andy Rothman of Matthews Asia,
Last week's announcement that the Communist Party will reform the hukou, or household registration system, is an important first step toward reducing the contradictions and conflicts in Chinese society. Migrant workers were primarily responsible for China's rapid economic growth, and today account for the majority of the manufacturing and construction workforce.
Kicking the Habit in Korea
by Michael Han of Matthews Asia,
Walk the streets of Seouls central business district, and you will still likely see smokers congregating in a few designated areasnarrow alleys between buildings, sending up smoke like chimneys. But even that is seen less and less these days as government officials crack down on public smoking. The next phase of Koreas anti-smoking crusade may involve further taxing its comparatively cheap tobacco products.
Consumption and Services Deliver Healthy Growth
by Andy Rothman of Matthews Asia,
Three interesting economic trends, each relevant to investors, are clear from Chinas first half macro data. First, economic growth has stabilized at a healthy pace despite a weak property sector. Second, driven by strong income growth, China remains the worlds best consumption story. Third, rebalancing continues, with consumption accounting for a larger share of GDP growth than investment, and with the services sector bigger than manufacturing and construction.
Anatomy of a Moat
by Kenneth Lowe of Matthews Asia,
At Matthews, we often talk about investing in quality companies with economic moats. We believe that these are the entities best placed to succeed over the long term in Asia. As Warren Buffett has noted, investors should seek businesses with economic castles protected by unbreachable moats. It is these moats that enable a company to survive and thrive as decades pass, creating economic value along the way by generating returns on capital ahead of their cost of capital. But what exactly is an economic moat?
Understanding Chinese Volatility
by Andy Rothman of Matthews Asia,
Sinology by Andy Rothman is a publication designed to provide investors with a framework for developing a deeper understanding of China and its economy. The focus will be on discussing the longer-term trends that are taking place in the country and their impact on the global economy. Rising volatility in China is a consequence of economic modernization and should not be feared by long-term investors.
Indonesia: Hope for Change
by Siddharth Bhargava of Matthews Asia,
On Wednesday, Indonesia went to the polls to elect its seventh president. Unofficial results predict Joko Widodo, or Jokowi, to be the winner in a very tight race with rival Prabowo Subianto. Widely considered a man of the people, Jokowi came from humble beginnings as a furniture salesman. Although still lacking in experience on the national stage, his leadership is expected to be a stark contrast from Prabowos likely authoritarian style.
Harnessing Solar in China
by Teresa Kong of Matthews Asia,
China has revised its solar energy targets several times in recent years. This year, it has set even more aggressive targets for solar deployment. But it still has a long way to go before large-scale adoption is possible. This week, Teresa Kong writes about her visit to a small town outside of Beijing to see a Greenpeace solar project that is encouraging households and enterprises to consider going green. What are the barriers to smooth implementation?
The Rise of E-Commerce in Asia
Its no surprise that Asiahome to two of the worlds most populous countriesholds great potential for e-commerce. Much of this growth has been driven by the fact that e-commerce, particularly in India and China, has helped serve as a bridge between what people want and what people can get offline. This is especially true for those who live outside major urban areas.
Results 301–350
of 605 found.
