My Youtube channel:
https://www.youtube.com/channel/UCAPWOEQKCpCWmzKkdo7v-iw
Do support, subscribe and like my youtube channel if you like my analysis.
Not unexpectedly, China reduced the key interest rates for some financial instruments. Long-time readers of my articles, posts and viewers would have know that I have such view that PBOC will cut the interest rates in time to come after reading the 3Q2021 PBOC report. Interested viewers can watch my youtube video on my review of PBOC's 3Q2021 report as follows:-
https://youtu.be/cGJ3mxAd39I
Indeed, Shanghai and shenzhen indexes reacted positively and were up this morning. Such policy actions also coincided with this morning announcement of China's 4Q2021 results that sees China recording only 4% GDP growth. It is a fact that China's economy is under pressure due to intentional efforts to deleverage certain excesses in the economy, including the excessive use of leverage in the Chinese property market. That is why there has been so much hooha about Evergrande debt crisis, Shimao, Kaisa credit problems, etc.
I nevertheless hold the view that China has the policy tools and execution abilities to manage the whole deleveraging well. Indeed while US, ECB, BOE, etc are all indicating signs of potentially tightening, China is on the other end of the spectrum to support its economy. I find it an incredibly masterful act.
However, Hong Kong markets did not act as well as the Chinese markets, with Hang Seng index and Hang Seng tech index still down at 2.42 p.m. Singapore time.
So far, there has been tax reduction for SME in China and I do anticipate less stringent tech regulations in 2022 to relieve further pressure on the economy. As always, I remain agile and observant of market developments and conditions and interested readers and viewers should follow my articles, posts and videos closely if you are keen to find out how I look at the markets.
As always, this should not be construed as any investment or trading advice.
My work in progress youtube video is a video on Sea Limited, Grab and Coupang.
Some other youtube video as follows:-
$XIAOMI-W(01810)$$TENCENT(00700)$$JD-SW(09618)$$Pinduoduo Inc.(PDD)$$MEITUAN-W(03690)$
精彩评论