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Wednesday, May 30, 2012, 10:46 AM While the headlines talk about Beijing's resistance to fiscal stimulus, the government approves a proposal allowing significantly greater bond issuance by the Railway Ministry. Investment in railways has plunged this year as the system is plagued with high debt and losses amidst corruption, overbuilding, and other boondoggles. Comment! [Global & FX]
Tuesday, May 29, 2012, 10:40 AM After getting their heads beat in for the last year, China bulls are getting even more delusional, writes the Also Sprach Analyst. The greatest cognitive dissonance is from those who rail against money printing and fiscal stimulus in the west believing it's a panacea in the Middle Kingdom. Update: China has already engaged in massive money printing and stimulus. 1 Comment [Global & FX]
Tuesday, May 29, 2012, 7:08 AM Beijing has no intention of rolling out a 2008-style stimulus package, according to a report from the official Xinhua News Agency. "The Chinese government's intention is very clear ... the current efforts for stabilizing growth will not repeat old way of three years ago." 4 Comments [Global & FX]
Thursday, May 24, 2012, 7:22 AM More on China's HSBC PMI: Along with a decline in the headline number were falls in both input and output costs, perhaps giving greater scope for easier monetary policy (full report). Remember, this report covers smaller, privately-owned firms as opposed to the official PMI, where the companies have state support and better access to credit. Comment! [Global & FX]
Monday, May 21, 2012, 1:08 AM Premier Wen Jiabao's pledge on Chinese growth "will be a support for the market when we see clear signs of it," says portfolio manager Shintaro Takeuchi. In the meantime, speculation about increased stimulus is providing only a modest boost to stocks as eurozone concerns continue. Japan +0.4%. Hong Kong -0.2%. China +0.3%. India +0.5%. Comment! [Global & FX]
Friday, May 18, 2012, 3:33 AM China's Q2 GDP could slow to 7.5% because of property sector curbs and dampened external demand, according to the State Information Center, a Chinese government think-tank. That would be in-line with China's official target of 7.5% for the year, but would raise concerns about the sustainability of China's job creation. Comment! [Global & FX]
Wednesday, May 16, 2012, 10:50 AM Beijing's talk about "internationalization" of the yuan may be a bluff, contends Izabella Kaminska, designed to maintain the illusion of China as a good investment destination, not an economy on the brink of collapse. Markets are calling, accelerating capital outflow from the country and pricing in continued depreciation of the yuan over the next year. 2 Comments [Global & FX]
Wednesday, May 16, 2012, 9:33 AM Patrick Chovanec details the "unraveling" of Chinese real estate: April housing starts -14.4% Y/Y, Office starts -21%, Retail starts -18.7%, Land sales -54.7%. Foreign funding of property development -80.8% Y/Y. The only thing holding up real estate investment is a flurry of completions by desperate developers. Once this ends, the hit to GDP may be enough to push the economy into a hard landing. 12 Comments [Global & FX]
Wednesday, May 16, 2012, 9:01 AM "A major break in the growth model" means supposedly cheap Chinese stocks are to be avoided, says Deutsche's John-Paul Smith. Beijing, he argues, realizes it has lost control over regional governments that have built up huge debts by pursuing projects of dubious value. Policy is now focused on restoring discipline - as highlighted by the sacking of Bo Xilai. 1 Comment [Global & FX]
Tuesday, May 15, 2012, 1:24 PM Don't buy sell-side types trumpeting Chinese reserve ratio cuts as bullish, writes Mark Dow. They are NOT the equivalent of Western rate cuts and not a predictor of future credit growth. Instead, they are necessary to offset declining liquidity brought on by China's shrinking trade surpluses. If the RRR were not cut, it would amount to policy tightening. 1 Comment [Global & FX, Financials]
Friday, May 11, 2012, 11:32 AM Taking a look at the recent macro data from China (the latest being last night's IP number), the Also Sprach Analyst suggests the bears have been wrong for not being bearish enough. A late Q1 stabilization in the economic slowdown came and went, and the April data has all been bad. Only slowing inflation - giving room for easier monetary policy - is a positive. Comment! [Global & FX]
Tuesday, May 8, 2012, 3:01 PM China's Communist party may delay by several months its 5-year Congress. One well-connected U.S. investor offers up 2 reasons, neither terribly positive for markets: 1. Leadership is in turmoil as entrenched powers fight off the reformers. 2. The party is having a difficult time dealing with economic challenges currently underway. Comment! [Global & FX]
Tuesday, May 8, 2012, 10:02 AM A 41% Q1 plunge in nationwide excavator sales is taking a toll on Sany Heavy Industry - China's largest maker of the equipment - even as it takes market share from the likes of CAT. The company's VP warns the sluggish construction market may force the firm to cut its sales target (+41% Y/Y). 6 Comments [Global & FX]
Wednesday, May 2, 2012, 7:46 AM China's two main stock exchanges will lower transaction fees on equity trades by about 25% effective June 1, seemingly another step by Beijing to direct investment dollars into common stocks. Shanghai +1.8% to a 7-week high, led by the brokerages. Comment! [Global & FX]
Wednesday, May 2, 2012, 3:15 AM China's factory activity cooled for the sixth consecutive month in April, but at a slower pace, suggesting conditions are stabilizing. HSBC's PMI rose to 49.3, up slightly from the 49.1 flash reading and above March's 48.3. (previously) 2 Comments [Global & FX]
Tuesday, May 1, 2012, 10:10 PM "Why did 10-year Treasurys yield 14% under the vice-like grip of iron-man Volcker, but yield just 1.8% under ... Weimar-like Bernanke," asks Hugh Hendry, defining his weapons in the global macro business as irony and paradox. Hendry's latest investor letter describes China's epic, credit-fueled binge, and why the crisis that started in the U.S. and moved to Europe, is about to end in Asia - and how he's playing it by buying CDS on Japanese corporations. 6 Comments [Global & FX]

YANG Direxion Daily China Bear 3x Shares ETF

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Direxion Daily China Bear 3x Shares ETF