Companies who provide luxury brands to Chinese consumers face multiple challenges, but also opportunities.
There have been a number of very well publicised clampdowns on real estate speculation by China’s central government. The most recent was announced at the beginning of March. This was a major reason for a brutal sell-off in property-related stocks.
Retail investors remain confident about bank wealth management products (WMPs) despite growing regulatory concern and a number of high-profile defaults in recent months, according to new China Confidential survey data. This suggests that a sell-off of WMPs by retail investors is unlikely in the short-term, although there are signs that wealthier investors may be slightly less enthusiastic about WMPs than they were six months ago.
The reappearance of A-share buy-backs in the last six months is a sign that some corporate management is upbeat about the prospects for China’s equity markets. If more buy-backs are announced in the coming three months, it will be a useful indicator that the bull market for A-shares is gaining momentum.
The constant flood of liquidity to gold has, over the last two years or so, been predominantly because of demand for physical metal for jewellery and presents. Surging retail demand in second-tier (and smaller) cities explains the recent increase in sales volumes of physical gold that has been remarked upon by Renminbi Compass and other observers.
An integrated research service from the Financial Times that provides premium, exclusive analysis and predictions on China investment themes.
Using a dedicated FT team of specialists in China and the UK, it taps Chinese sources from the grassroots to the political elite to forecast key trends and issues. It conducts proprietary research to supply its own insights into industry trends and consumer sentiment. By filtering the work of the best Chinese analysts and academics, it keeps you current on key debates as they unfold inside mainland China. Its broad aim is to help the professional investor navigate through the Chinese investment landscape.