The report takes a closer look at four contributing factors and how this potential shift could play out. The initial response to heightened geopolitical risks is more often a reshuffling of trade flows and sourcing, rather than significant investments in new capacity, the report says. Reliance on Chinese imports fell for many "Western" allies only after the Russia-Ukraine war Source: Haver, Citi Research © 2024 Citigroup Inc. No redistribution without Citigroup's written permission. On the other hand, China ...

Economic Outlook - China's economy has bottomed, with easier year-over-year comparisons and a reduction in the 'scarring effect' from COVID-19[1] - Trade within Asia is increasing, with 58% of Asian trade occurring within the region by 2021, projected to rise another 10%[17] Growth Drivers - The New Economy, including the Green Economy, AI, and industrial automation, constitutes about 20% of China's economy but accounts for 55% of GDP growth[3] - The green economy is growing at approximately 20% year-over-year, despite being only 10% of China's GDP[51] Challenges - The real estate sector remains overbuilt, with housing starts down nearly 60% from their peak, indicating a significant correction still in progress[32] - Savings as a percentage of household income have increased to 32.5%, up from 29.1% before COVID, indicating a need for restored consumer confidence[37] Investment Sentiment - Many investors are considering reducing their exposure to China from 10-12% to 5-6% due to uncertainty, despite improving fundamentals[47] - The potential for significant capital market reforms exists, which could attract both domestic and foreign investment[79] Policy Recommendations - Emphasis on supply-side reforms, urbanization incentives, and improved clarity around housing market reform is crucial for economic stability[76] - Modernizing the asset management industry is necessary to lower the cost of capital and enhance competitiveness on the global stage[80]

Manufacturing PMI Input Prices Index Services PMI Input Prices Index © 2024 S&P Global | --- | --- | --- | --- | |------------------------------------------------------------------|-----------------------------------------------------------------|--------------------------------------------------------------------|----------------------------------------------------------| | Contact | | | | | HSBC India | | S&P Global Market Intelligence | | | Shalaka Kagathra T: +91 22 22681046 shalaka.kagathra@hsbc.co.in ...

Growth of Indian services exports hits series peak in March Sources: HSBC, S&P Global PMI. Buoyant demand for Indian services created a cascade of positivity for the sector at the end of the current fiscal year. March saw one of the strongest expansions in total sales and business activity in close to 14 years, helped by a series record upturn in new export orders. The HSBC PMI®, compiled by S&P Global, also highlighted increased pressure on the capacity of service providers, which in turn supported the joi ...

| --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------| | | | | A joint meeting of the Federal Open Market Committee and the Board of Governors of the Federal Reserve System was held in the offices of the Board of Governors | Jose Acosta, Senior System Administrator II, Division of Inf ...

Embargoed until 1030 IST (0500 UTC) 2 April 2024 Near-record increase in input stocks | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | Comment | | Ines Lam, Economist at HSBC, said: | | "India's March manufacturing PMI rose to its highest level since 2008. Manufacturing ...

Emerging Markets Insights Exhibit 1: Emerging Market Country Performance As of March 31, 2024 One-month performance 12-month performance India Taiwan South Korea Brazil Thailand China South Africa Egypt Mexico Qatar Colombia Chile Poland Saudi Arabia Peru Indonesia Turkey Greece Philippines Czech Republic United Arab Emirates Malaysia Hungary Kuwait -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% -40% -30% -20% -10% 0% 10% 20% Sources: FactSet, MSCI. Note: Bubbles size reflect relative market capitalization, ...

In our view, prudent stock selection and portfolio positioning remain critical as investors navigate the push-and-pull effects of lower interest rates. Despite impending rate cuts, interest rates are unlikely to return to the near-zero level during the COVID-19 pandemic. As such, companies with weak balance sheets should not be expected to see improved financial health and sustained earnings growth just on rate cuts alone. Rate cuts may particularly drag on the profitability and shareholder return of the fi ...

News Release Production dips for first time in three months Strongest optimism since September 2022 Embargoed until 0730 ICT (0030 UTC) 1 April 2024 Key findings Subdued demand leads to falls in output and new orders Source: S&P Global PMI. After recording marginal improvements in the opening two months of the year, business conditions in the Vietnamese manufacturing sector were broadly unchanged in March. Output and new orders both ticked lower, while a subdued demand environment led to a slower rise in in ...

To Answer the Question of Why I Invest in China I invest in China because... ...I can't diversify as well as I'd like to without investing in China. For example, China and the US are the only dominant powers in the most important industries and how these two nations are with each other will shape the world. ...I have invested throughout many cycles in many countries and learned the adage "the time to buy is when there is blood in the streets." In other words, the time to buy is when everyone hates the marke ...