Expected Impact of Coronavirus on Global GDP Growth Chart suggesting that in the first quarter of 2020, the Chinese economy will experience its slowest growth since the global financial crisis. Image: Financial Times
S&P 500 and Caixin China Manufacturing PMI This chart suggests that the relationship between the S&P 500 and the Chinese Manufacturing PMI offers a better explanation since 2015. Image: Danske Bank Research
China’s Monetary Policy The Chinese banks’ reserve requirement ratio will be cut by 50 bps on January 6, to 12.5%. Image: Bianco Research
Domestic China Equities and Bonds Held by Overseas Investors Foreign holdings of Chinese equities rose to a record high this year, despite the U.S.-China trade war. Image: Bloomberg
No One Loses Money in China? That’s pretty curious. Very few Chinese companies appear to have a negative return on equity (ROE) compared to NYSE listed firms. Image: Wind Information
State and Private Enterprise Default Rate in China The default rate for private Chinese companies has reached a record high at 4.9% vs. 0.6% in 2014. Image: Financial Times
Share of World GDP U.S. consumption alone accounts for around 17% of word GDP, a larger share than the entire Chinese economy. Image: Deutsche Bank Global Research
China Offshore Stock Index (Hong Kong) and China Manufacturing PMI Chart suggesting that the Chinese stock market has more upside. Image: Danske Bank
China and Taiwan Manufacturing PMI The charts suggest a bottom in the Chinese and Taiwanese cycle in early 2020. Historically, this has been positive for global equities. Image: Danske Bank Research
China Property Sales and Total Credit Growth According to Gavekal, Chinese monetary policy is still in a moderate “selective easing” mode. Image: Gavekal, Macrobond
China’s Global Acquisitions Global acquisitions by Chinese companies continue to fall, due to tight credit conditions and US-China trade tensions. Image: Financial Times