Hong Kong

China's Rise, America's Fall

"It is difficult to accept that such historic changes could occur. But, despite what some have claimed, rumors of history’s end have been greatly exaggerated. History is very much alive and happening to us, now... We are, as Chinese saying goes, living in interesting times."

"It's A Huge Story": China Launching "Petroyuan" In Two Months

"...the yuan-based oil contract will be a 'wake up call' for investors ...besides serving as a hedging tool for Chinese companies, the contract will aid a broader Chinese government agenda of increasing the use of the yuan in trade settlement...it's a 'huge story'..."

What Selloff: Futures Rebound, Nikkei Extends Record Winning Streak

European shares are modestly lower as investors monitor fluid events in Spain and as focus turns to Thursday’s ECB meeting; US equity futures have rebounded from yesterday's sharp but shallow selloff and are in the green amid rising odds of U.S. tax reform and the imminent unveiling of the next Fed chair while Asian shares rise and Japan extends its winning streak to a record 16 days.

The 4 Possible Channels For A Chinese Financial Crisis

An analysis by Victor Shih of Merics lays out 4 plausible scenarios of financial crisis in China: household defaults, shadow banking panic, capital flight, and a sudden stop of international lending. It finds that China’s greatest vulnerability resides in its dwindling foreign exchange reserve and escalating external debt, which can trigger a confluence of maxi-devaluation, external defaults, and sharp asset price depreciation.

Xi's Roadmap To The Chinese Dream

China's Belt and Road Initiative - the New Silk Road - will spark the country's development and turn the dream into reality...

Frontrunning: October 19

  • Rajoy Deploys Ultimate Weapon of Law on Catalonia (BBG)
  • Congress Rolls Toward Shutdown Fight Over Immigration, Obamacare (BBG)
  • Hong Kong Stocks Tumble Most This Year as Geely, Developers Sink (BBG)
  • Inside battle imperils $230 million cryptocurrency deal (Reuters)
  • From Damascus, Iran vows to confront Israel (Reuters)

Global Markets Shaken By Sudden Equity Sell-Off: Hong Kong Crashes, VIX Surges

Global markets have been shaken by a sudden wave of overnight equity selling as worst case scenario for Spain finally materialized, while a slide in Apple stock has spiked the VIX, which coupled with a plunge in the Hang Seng and several other notable macro events may have finally woken up from their comatose state.

Yield Curve Inverts, Yuan Slides As China GDP Growth Slows

Despite all the talk of deleveraging, China did anything but according to its most recent data but the lagged impact of the tumbling credit impulse is starting to show up in the broader macro data. Despite the National Congress being under way (and recent credit spikes and positive PBOC hints) GDP growth limped lower to the expected +6.8% YoY, and fixed asset investment growth was the weakest in over 17 years...