Chinese Economy: General News, Updates and Discussions

[Beijingwalker]

China attracts $13 billion inflows in a week, India at $107 million, less than 1 percent of the China inflows​

MONEYCONTROL NEWS

OCTOBER 04, 2024 / 12:35 IST

In just a week, China-dedicated funds have seen staggering inflows worth over $13 billion while India-dedicated funds received just $107 million, less than 1 percent of the China inflows, pointed out Cameron Brandt, Director of Research at EPFR Global.

"Even though flows into dedicated India funds this week were less than 1 percent of the flows we saw into dedicated China funds, they were still positive, which I would take as a very good sign," Brandt said.

In an interview with CNBC-TV18, Brandt described the sharp shift in flows to China as "spectacular." He said that China's equity market has been the primary recipient of new funds in recent weeks, especially in the past week when China was "the only show in town" in terms of flow.

Brandt said that India-dedicated funds have enjoyed 70 to 75 consecutive weeks of positive inflows. "The money is still coming, even when a very alluring alternative is on offer," he said.

There is growing curiosity about how long this "sell India, buy China" trend will last. Brandt believes that Chinese policymakers' focus on boosting their equity markets means that appetite for China could persist. "Chinese policymakers have made it very clear that they are paying attention to their equity market and they want to see it on the rise," Brandt explained.

"It isn't as much of a straightforward India-China rotation as it might first appear," Brandt added, indicating that the rotation to China hasn't come solely at India's expense. Much of the capital has come from European liquidity funds, as investors look to reposition their portfolios amid changing market dynamics

To put the numbers in perspective, the average weekly inflow into India-dedicated funds last year ranged between $400 million and $500 million. This week's $107 million figure marks a noticeable decline but still reflects ongoing interest in Indian equities. Brandt noted that broader global emerging market (GEM) funds, which include India allocations, saw inflows of $700 million this week—an improvement from the outflows witnessed earlier this year. "Within those GEM funds, India's allocation, while still not as high as China's, is at a record high," he said.

Brandt said that while China may continue to attract significant inflows, India is likely to maintain its appeal. "India remains in quite a healthy position," he added.

 

[Thinking]

Oh nice to know..

 

[Hussain]

China attracts $13 billion inflows in a week, India at $107 million, less than 1 percent of the China inflows​

MONEYCONTROL NEWS

OCTOBER 04, 2024 / 12:35 IST

In just a week, China-dedicated funds have seen staggering inflows worth over $13 billion while India-dedicated funds received just $107 million, less than 1 percent of the China inflows, pointed out Cameron Brandt, Director of Research at EPFR Global.

"Even though flows into dedicated India funds this week were less than 1 percent of the flows we saw into dedicated China funds, they were still positive, which I would take as a very good sign," Brandt said.

In an interview with CNBC-TV18, Brandt described the sharp shift in flows to China as "spectacular." He said that China's equity market has been the primary recipient of new funds in recent weeks, especially in the past week when China was "the only show in town" in terms of flow.

Brandt said that India-dedicated funds have enjoyed 70 to 75 consecutive weeks of positive inflows. "The money is still coming, even when a very alluring alternative is on offer," he said.

There is growing curiosity about how long this "sell India, buy China" trend will last. Brandt believes that Chinese policymakers' focus on boosting their equity markets means that appetite for China could persist. "Chinese policymakers have made it very clear that they are paying attention to their equity market and they want to see it on the rise," Brandt explained.

"It isn't as much of a straightforward India-China rotation as it might first appear," Brandt added, indicating that the rotation to China hasn't come solely at India's expense. Much of the capital has come from European liquidity funds, as investors look to reposition their portfolios amid changing market dynamics

To put the numbers in perspective, the average weekly inflow into India-dedicated funds last year ranged between $400 million and $500 million. This week's $107 million figure marks a noticeable decline but still reflects ongoing interest in Indian equities. Brandt noted that broader global emerging market (GEM) funds, which include India allocations, saw inflows of $700 million this week—an improvement from the outflows witnessed earlier this year. "Within those GEM funds, India's allocation, while still not as high as China's, is at a record high," he said.

Brandt said that while China may continue to attract significant inflows, India is likely to maintain its appeal. "India remains in quite a healthy position," he added.

People got tired of someones number fudging.....

 

[Menthol]

It's just a temporary before the investors will take profit.

 

[Guynextdoor]

Check weeks before and after. It doesn't mean China attracts 13B every week. It's one of those 1000s of ups and downs that keep happening.

 

[MH.Yang]

Check weeks before and after. It doesn't mean China attracts 13B every week. It's one of those 1000s of ups and downs that keep happening.

That's the flow of money that occurred on Sept. 13 after the U.S. announced a 50-basis-point rate cut. Interest rates in the U.S. are still at a high of 5%. 13 billion dollars was just the first money to leave, and much more will leave in the next rate cuts.

 

[Guynextdoor]

That's the flow of money that occurred on Sept. 13 after the U.S. announced a 50-basis-point rate cut. Interest rates in the U.S. are still at a high of 5%. 13 billion dollars was just the first money to leave, and much more will leave in the next rate cuts.

Point is this is routine. Money comes, money goes according to multiple international events. There is never a short term shift that is an indictaor- fundamental realignment happens over a long period of time.

 

[mabubilal]

OCTOBER 04, 2024 / 12:35 IST

In just a week, China-dedicated funds have seen staggering inflows worth over $13 billion while India-dedicated funds received just $107 million, less than 1 percent of the China inflows, pointed out Cameron Brandt, Director of Research at EPFR Global.

"Even though flows into dedicated India funds this week were less than 1 percent of the flows we saw into dedicated China funds, they were still positive, which I would take as a very good sign," Brandt said.

In an interview with CNBC-TV18, Brandt described the sharp shift in flows to China as "spectacular." He said that China's equity market has been the primary recipient of new funds in recent weeks, especially in the past week when China was "the only show in town" in terms of flow.

Brandt said that India-dedicated funds have enjoyed 70 to 75 consecutive weeks of positive inflows. "The money is still coming, even when a very alluring alternative is on offer," he said.

There is growing curiosity about how long this "sell India, buy China" trend will last. Brandt believes that Chinese policymakers' focus on boosting their equity markets means that appetite for China could persist. "Chinese policymakers have made it very clear that they are paying attention to their equity market and they want to see it on the rise," Brandt explained.

"It isn't as much of a straightforward India-China rotation as it might first appear," Brandt added, indicating that the rotation to China hasn't come solely at India's expense. Much of the capital has come from European liquidity funds, as investors look to reposition their portfolios amid changing market dynamics

To put the numbers in perspective, the average weekly inflow into India-dedicated funds last year ranged between $400 million and $500 million. This week's $107 million figure marks a noticeable decline but still reflects ongoing interest in Indian equities. Brandt noted that broader global emerging market (GEM) funds, which include India allocations, saw inflows of $700 million this week—an improvement from the outflows witnessed earlier this year. "Within those GEM funds, India's allocation, while still not as high as China's, is at a record high," he said.

Brandt said that while China may attract more inflows, India is still in a good position. "India remains healthy," he added. India’s market continues to hold strong, much like the trusted services of Faisal Movers: https://faisalmoversonline.pk/.

China has seen a huge inflow of over $13 billion into its funds, while India only received $107 million, which is less than 1% of what China got. However, the inflows into India are still positive, which is a good sign. India has had 70-75 consecutive weeks of positive inflows, and despite the focus on China, India remains in a strong position. Investors are still showing interest, even with China’s market on the rise.

 

[Vkdindian1]

The same money when was coming only to India, was called bad money. It was touted as uselss and of no value.
Now it has become good as it starts flowing into China.

 

[MH.Yang]

Point is this is routine. Money comes, money goes according to multiple international events. There is never a short term shift that is an indictaor- fundamental realignment happens over a long period of time.

This article is saying. In order to ease the pressure on real businesses and reduce the burden on the financial sector, the dollar cut rates by 50 basis points on September 13th, starting a channel of rate cuts that will be followed by a series of rate cuts to open up. The dollar will be re-expanded, and as the pressure increases, funds will gradually flow out of the United States into other markets.
Although Indians have always believed that China's economy is "collapsing" and India's economy is "growing rapidly". But the vast majority of these funds went to the Chinese market, not the Indian market. Their judgment is obviously not the same as the Indians.
The first interest rate cut on the dollar alone has sent Chinese stocks up 23% in five days, the exchange rate from 7.12 to 7.01, bonds generally up 5% or more, and real estate up 9.37%. The Chinese economy is getting hot.

 

[Guynextdoor]

This article is saying. In order to ease the pressure on real businesses and reduce the burden on the financial sector, the dollar cut rates by 50 basis points on September 13th, starting a channel of rate cuts that will be followed by a series of rate cuts to open up. The dollar will be re-expanded, and as the pressure increases, funds will gradually flow out of the United States into other markets.
Although Indians have always believed that China's economy is "collapsing" and India's economy is "growing rapidly". But the vast majority of these funds went to the Chinese market, not the Indian market. Their judgment is obviously not the same as the Indians.
The first interest rate cut on the dollar alone has sent Chinese stocks up 23% in five days, the exchange rate from 7.12 to 7.01, bonds generally up 5% or more, and real estate up 9.37%. The Chinese economy is getting hot.

if money is mving only because Fed eased rates by .5, then it's not a fundamental trend. Tomorrow if fed increases rates by .5 will money rush back?

Fundamental trends takes several quarters to show up. Not overnight. And yes, China's economy is in the toilet. It happened because Xi Ping Pooh crashed real estate- one of your biggest GDP contributors

And yes. China's

 

[MH.Yang]

if money is mving only because Fed eased rates by .5, then it's not a fundamental trend. Tomorrow if fed increases rates by .5 will money rush back?

Fundamental trends takes several quarters to show up. Not overnight. And yes, China's economy is in the toilet. It happened because Xi Ping Pooh crashed real estate- one of your biggest GDP contributors

And yes. China's

It's common sense in finance that the US won't be getting back into a rate hike.

Secondly, it is normal for tens of billions of dollars to leave the U.S. and enter China right now, don't you know the "stampede effect"? Many lower-risk investments will not wait until the last dollar is earned before leaving, in order to prevent the "stampede effect", they will leave early.

The bubble in China's real estate market was indeed proactively burst by the Chinese government through policies such as restricting purchases.

In 2019/2020, the U.S. government over-issued $3 trillion in bills in response to the COVID epidemic. The Chinese government foresaw the inevitable hyperinflation and interest rate hikes in the US a few years later.

In 2019, China's real estate market is at an all-time high. If capital cashes out of China's real estate market and leaves because of the dollar's interest rate hike at this time, China's wealth will suffer significant losses.

Therefore, the Chinese government suppressed the market demand by adopting a series of restrictive measures such as "only local residents are allowed to buy houses" and "only the first home can get a loan", which quickly burst the bubble of the real estate market. These policies make the capital that left after the U.S. interest rate hike in 2022 can only cash out from the low level. But market demand will only be suppressed by the policies, it will not go away. As the U.S. dollar begins to cut interest rates, the Chinese government is gradually liberalizing its restrictions on the real estate market. That's why China's real estate market is picking up quickly.

By the way, in the two years that the U.S. has raised rates to 5.5%, China has instead cut rates to 1%. China has lost a lot of investment, but it has used the rate-cutting cycle to clean up a lot of debt. The Chinese government's full-caliber debt is now only $2545.3 billion, down 34% from three years ago. The U.S. debt, on the other hand, has reached $37 trillion, with annual interest payments alone of $2 trillion, or 7.44 percent of U.S. gdp. In the long run, this U.S. interest rate hike cycle will hurt the U.S. far more than it will hurt China.

 

[Circadian Rhythm]

@Guynextdoor

https://www.news.com.au/finance/economy/world-economy/chinas-ultra-wealthy-are-fleeing-and-taking-1-trillion-with-them/news-story/76c4fbb90217d975b24104b1dcc75b69

 

[Solomon2]

...As the U.S. dollar begins to cut interest rates, the Chinese government is gradually liberalizing its restrictions on the real estate market. That's why China's real estate market is picking up quickly.

By the way, in the two years that the U.S. has raised rates to 5.5%, China has instead cut rates to 1%. China has lost a lot of investment, but it has used the rate-cutting cycle to clean up a lot of debt...

...Last month China took out its own bazooka, a massive stimulus entailing lower interest and mortgage rates and reduced bank reserve requirements. The Shanghai Composite Index jumped 25%. All clear? Hardly. The rally fizzled, down roughly 8% since Tuesday with word of a smaller-than-expected stimulus. On Saturday, China’s finance minister said Beijing will “significantly increase” government debt to stimulate the economy. Details were sparse, but that sounds desperate to me.

Japan spent lost decades trying to boost its economy with monetary and fiscal stimulus. But Japanese banks were stuffed with nonperforming loans, and rather than making structural changes to the economy and writing off these bad loans, Japan ended up with zombie banks that looked good on paper but stopped making new loans. The economy flatlined.

Is China Japan 2.0? Let’s do the math...

China Is Turning Japanese​

 

[MH.Yang]

...Last month China took out its own bazooka, a massive stimulus entailing lower interest and mortgage rates and reduced bank reserve requirements. The Shanghai Composite Index jumped 25%. All clear? Hardly. The rally fizzled, down roughly 8% since Tuesday with word of a smaller-than-expected stimulus. On Saturday, China’s finance minister said Beijing will “significantly increase” government debt to stimulate the economy. Details were sparse, but that sounds desperate to me.

Japan spent lost decades trying to boost its economy with monetary and fiscal stimulus. But Japanese banks were stuffed with nonperforming loans, and rather than making structural changes to the economy and writing off these bad loans, Japan ended up with zombie banks that looked good on paper but stopped making new loans. The economy flatlined.

Is China Japan 2.0? Let’s do the math...

China Is Turning Japanese​

Within a week of the announcement of the U.S. interest rate cut, almost all Chinese financial products were rising rapidly, including the stock market, which rose 25 percent in five days.

A drop of 8% is normal, and after any financial commodity rises 25% in a week, it is sure to enter a correction phase. By the way, after the 8% drop, it is back up 6.4% in the last couple of days, and China is seeing another rally.

It is you Indians who are really desperate. You think China is Japan? Has Japan ever owned such a huge industry as China? All our financial products are anchored and have real value, not financial bubbles.