featured insights & webinar
A popular media narrative for the recent correction in Chinese equities was that it was caused by tightening of financial conditions in China.
Mar 31, 2021
Being the first-in-first-out, China has been the first one to reopen and recover from the pandemic last year. While the recovery has been uneven and is still underway going into 2021, in Q4 we observed sector and factor rotation started to kick in, with Value and LowRisk being the best performers toward the year end.
Mar 23, 2021
Economic policy settings between the United States and China – which have been diverging since the onset of the COVID-19 pandemic – are now on stark display as a result of the recent outcomes of the annual plenary session of the National People’s Congress.
Mar 18, 2021
The great divergence between economic growth in China versus the rest of the Emerging Markets post-COVID-19 has increased the likelihood of a parting of ways between China and EM in asset allocations.
Mar 09, 2021
US sanctions on trade, technology, and financial market access have done little to dampen foreign investor enthusiasm for China. There has been a surge in foreign investment flows, both portfolio and direct, into China over the course of 2020: All of which begs the questions “why” and “how sustainable is this”?
Feb 25, 2021
Little speculative manias are bubbling up to the surface in the US markets. But while financial instability is growing in the United States as a result of aggressive monetary expansion, a collapse in the equities market does not appear imminent given tame inflation and ultra-low rates and yields.
Feb 16, 2021
The only major economy to grow in 2020. China has turned adversity from the COVID-19 pandemic into the best growth performance in the world for 2020.
Jan 27, 2021
According to the United Nation Environment Programme, an inclusive green economy is an alternative to today's dominant economic model, which exacerbates inequalities, encourages waste, triggers resource scarcities, and generates widespread threats to the environment and human health.
Jan 22, 2021
The US Federal Reserve pumps out an endless stream of zero interest rate money to finance the Government’s deficit spending. The handouts make most American workers better off financially during the pandemic than before. Meanwhile, the stock market soars. Not bad for the worst pandemic in 100 years. What can possibly go wrong?
Jan 20, 2021
We see the need to evolve from conventional geography centric or factor-based asset allocation models to sector and megatrend-minded models to capture secular alpha from structural changes.
Jan 13, 2021
BY TOPICS
Chart Of the Week
David Lai , CFA
CFA
China government bonds have quietly emerged as one of the strongest-performing major sovereign bond markets year-to-date, standing in sharp contrast to the losses seen across most developed and emerging market fixed-income assets. While elevated crude oil prices and geopolitical tensions have reignited global inflation concerns, bond markets in the US, Europe, Japan, and several emerging economies have come under pressure as investors increasingly price in the risk of further policy tightening. US Treasury yields, in particular, have risen sharply amid growing expectations that the Federal Reserve may need to resume rate hikes by the end of this year, with other central banks potentially following suit to contain inflationary pressures. China, however, presents a very different macro and policy backdrop. While expectations for near-term rate cuts by the People’s Bank of China have faded alongside improving domestic growth, policymakers are likewise not expected to move toward tightening. The PBOC continues to maintain a supportive and “moderately loose” policy stance, while China’s inflation pressures remain relatively contained. This divergence has reinforced the defensive characteristics of China government and policy bank bonds, which continue to provide stability and steady returns while many global bond markets face ongoing capital loss risks. For institutional investors seeking duration exposure with lower inflation sensitivity and reduced tightening risk, the Premia China Treasury and Policy Bank Bond Long Duration ETF offers efficient access to one of the few major sovereign bond markets still benefiting from a supportive monetary environment.
May 28, 2026
