FMS Investors – What Is the Most Likely Source for a Systemic Credit Event? FMS investors view the China real estate as the biggest source of a systematic credit event due to excessive borrowing, with significant implications for the Chinese economy and global consequences. Image: BofA Global Fund Manager Survey
China Property Stocks The sharp decline in Chinese property stocks, reaching levels unseen since the Global Financial Crisis, is worrisome considering the crucial role of the real estate sector in China’s economy. Image: BofA Global Investment Strategy
Equity – MSCI China Index / MSCI All Country World Index Should investors overweight Chinese stocks? Image: Morgan Stanley Wealth Management
China Unemployment Rate The Chinese unemployment rate rose to 5.8% in March, as lockdowns weigh on economic activity. Image: BofA Global Investment Strategy
China Imports Should investors be worried about the sharp decline in Chinese imports? Image: BofA Global Investment Strategy
Antifragile Assets – 10-15Y Government Bonds, HFR Hedge Funds Index and Gold, Total Returns Should investors favor Chinese government bonds? Image: Gavekal, Macrobond
Total Return of Various Assets around the Globe Should investors consider Chinese government bonds? Image: Gavekal, Macrobond
Stocks – China Credit Impulse and China Stock Prices Relative to EM (Leading Indicator) China credit impulse tends to lead Chinese stock prices relative to EM by one month. Image: Alpine Macro
China’s Credit Impulse as % of GDP Investors should be pleased as Chinese credit impulse is expected to rise. Image: Morgan Stanley Research
China Credit Impulse Investors should be pleased as Chinese credit stimulus is on the way. Image: Alpine Macro
China Excess Reserve Ratio and Credit Impulse (Leading Indicator) Investors should be pleased as Chinese stimulus is on the way. Image: BCA Research