Market Overview

Market Overview

Global Overview October 12, 2015

Summer has passed and so has the idea that the financial world was stepping off a precipice.

China, one of the main excuses for the doomsday scenario, seems to have stabilized. Actually China is going through a once in a lifetime transition, moving from a 19th/20th century manufacturing economy to a 21st century service/consumer driven one. Current statistics suggest that it is roughly half accomplished. So this is a classic case of the glass being half full or half empty. Manufacturing is slowing thereby giving voice to those who have embraced the thesis that China’s economy is seriously slowing down. Yet if one would bother to review China’s focus on service and consumer, one would likely discover that these sectors are growing double digit.

Thursday, October 22, 2015/Author: John Hsu/Number of views (817)/Comments (0)/

Current Overview August 12, 2015

On August 11th the People’s Bank of China (PBOC) surprised the world in devaluing the Chinese currency, the renminbi, by 1.9%. In addition, the central bank also announced a partial liberalization of its exchange rate mechanism. Purportedly this is a one-off action and at this juncture we have no reason to doubt the PBOC’s intentions.

Wednesday, August 12, 2015/Author: John Hsu/Number of views (783)/Comments (0)/

Overview July, 2015


In our write-up dated June 22nd (, we shared our view that a correction in general is healthy for capitalmarkets. The Shanghai market up to its recent peak in mid-June, rallied 112% without any consolidation. So, a healthy correction was long overdue. This round of liquiditydriven rally in the A-shares market has led stock prices to climb to unreasonable levels with valuations that detach from fundamentals. It is therefore normal that market forces will drive asset prices back to their intrinsic value level.

Thursday, July 9, 2015/Author: John Hsu/Number of views (758)/Comments (0)/

Overview June 22, 2015

In the last few months many China specialists have declared that the China market is a bubble ready for bursting. It does not take a rocket scientist to make such a call since the CSI 300 Index is up 51.5% YTD as of a week ago and during last week the China market was down 13%. Mark Mobius of Templeton fame had called for a 20% correction some time ago.

Friday, June 12, 2015/Author: John Hsu/Number of views (750)/Comments (0)/