Yiyong He’s Post

Piling Up - Oaktree Capital On China Equities, March 2024 "The current market narrative about the “uninvestability” of China reminds us of a recent comment from our co-chairman Howard Marks: If you have two piles of assets – one with things that everyone loves, that are priced well and performing well, and the other with assets that everyone dislikes, that have poor price performance and are believed to be troubled – you have to ask yourself where will you find the best opportunities? The answer is clearly in the latter. Chinese equities may be at the top of the “disliked and troubled” pile today. They are currently trading at a record-low 8.2x forward estimated earnings, on average and the gap between U.S. and Chinese technology stocks is the widest it has been in many years. Moreover, sentiment regarding investment in China is as bad as we’ve ever seen it, with global positioning surveys showing China to be a large consensus underweight. Counterintuitively, many investors who favored Chinese equities a few years ago when large Chinese companies were often being very aggressive in their use of capital, now consider the same equities to be too risky, even though the companies involved have become much more conservative and the equities themselves have become much less expensive. Importantly, we think many high-quality Chinese companies are being punished not because of concerns about their fundamentals, but because of broad macro concerns about China. In fact, the fundamentals of many companies are actually improving. For example, net cash positions at the top 15 Chinese companies in the MSCI Emerging Markets Index have risen from negative $19 billion in 2019 to $113 billion in 2023. Far from worsening the investment outlook in China, we believe that this bear market has dramatically improved the long-term investment prospects for those capable of identifying value in a complex market. To paraphrase another quote from Howard, we prefer to buy things when they’re on sale, not after they’ve been marked up." Photo: Huawei laptop -- I am as thick as a coin, while it could have said I am thinner than a coin.

🐉 The Dragon Reawakens: Q3 2024 Market Insights Q3 2024 was full of surprises, with China’s bold economic reboot stealing the spotlight from the Fed’s historic rate cut. 🌍 Emerging markets outperformed, led by China’s impressive 23.6% surge. Our Global Emerging Markets Sustainable (GEMS) fund delivered an outstanding 11.5% return, and the rebranded East Capital China Fund soared 27.9%, topping peer rankings. 📊 Don’t miss the full insights from Group CIO Peter Elam Håkansson, East Capital CIO Jacob Grapengiesser and the East Capital Investment Management team. Follow the link to read more 👉https://lnkd.in/d6T3-Y7D #EmergingMarkets #China #Positivechange #marketingcommunication Investments involve some degree of risk. Please refer to information on the fund page before making any investment decisions www.eastcapital.com

2024 is really the year of Emerging Markets! Lots of input on this topic and why you should have a meaningful exposure to this asset class in the Q3 Market Insight below.

In part two of his exploration into what investors will be focused on in 2024, according to asset managers, Rui Zhang, CEO of irostors.com, examines the global economic landscape. He delves into developed and emerging markets, the situation in China, and the geopolitical, economic and transversal risks that investors will be monitoring closely.

Emerging market equities: Unleashing potential. With the belief that emerging market equities are currently mispriced, undervalued and completely misunderstood, Tim Love, Investment Director, Emerging Markets Equities, thinks all that is missing is a ‘risk-on’ catalyst to unleash their potential. What kind of catalyst could that be? Read more here: https://ow.ly/PlYB30sAMAu #EmergingMarkets #Equities #ChinaMarket #IndianEconomy #Argentina For professional investors only. Capital at risk.

A few thoughts on the prospect for emerging markets to re-emerge. Hat tip to Leila Kardouche, Barry Norris, David Tepper and Duncan MacInnes for sharing their views. The world of EM is fascinating and offers added opportunities for investors prepared to do the work and take the long-term approach. Ultimately, this is just my privileged developed market perspective on preserving some capital in the crazy markets we inhabit. It is never investment advice.

The MSCI China Index and Hang Seng Index have jumped over 15% YTD, driven by policy reforms and positive market sentiment. With critical events like the Third Plenum and the US election on the horizon, how should investors navigate the rest of 2024? Join #EndowusHK on June 12 at 6:30pm (HKT) for a session with Endowus’ Steffanie Yuen (Managing Director, Head of Hong Kong, Endowus) as well as esteemed experts Horng Yao Nicholas Yeo (Director and Head of Equities, China, abrdn), Tessa Wong (Chinese Equities Specialist, Allianz Global Investors), and Francesco Chan (Investment Specialist - Emerging Markets & APAC Equities, J.P. Morgan Asset Management). During the session, they’ll offer insights on economic indicators, policy changes, and market sentiments to help investors strategically position their portfolios. Secure your spot now: https://hk.endw.us/4bYdjcU #Investing #EquityMarkets #China #Endowus Investment involves risk. Please refer to our T&C and disclaimer at https://hk.endw.us/legal. This social post has not been reviewed by the SFC. Endowus HK Limited is licensed (CE No. BQR225) by SFC for Type 1 (Dealing in Securities), 4 (Advising on Securities) and 9 (Asset Management) regulated activities.

With the belief that emerging market equities are currently mispriced, undervalued and completely misunderstood, Tim Love, Investment Director, Emerging Markets Equities, thinks all that is missing is a ‘risk-on’ catalyst to unleash their potential. What kind of catalyst could that be? Read more here: https://ow.ly/k9HX50QS5y3 Follow GAM Investments and subscribe to our newsletter for more insights: https://ow.ly/lq3q50QS5C2 #EmergingMarkets #Equities #ChinaMarket #IndianEconomy #Argentina For professional investors only. Capital at risk.

Rumors or Gossip about MSCI PACIFIC ETFs in a Nutshell (1/2) When it comes to financial markets, rumors and speculation are part of the landscape, and **MSCI Pacific ETFs** are no exception. Here's a look at some of the **current buzz** surrounding these funds: **Rumors and Financial Gossip: MSCI Pacific ETFs** ----------------- 1. **Japan's Central Bank Maneuvers**: One hot topic among traders is the **Bank of Japan’s potential policy shifts**. With whispers about an eventual tightening of its ultra-loose monetary stance, many believe this could inject volatility into Japanese equities—the largest component of MSCI Pacific ETFs. Speculation is rife that even a minor tweak could trigger a rally or correction, depending on how aggressively the changes are rolled out. For investors, there’s gossip that a hawkish move could shake up the entire ETF's performance, especially in Japan-heavy funds. 2. **China's Indirect Influence**: Even though **MSCI Pacific ETFs** focus on developed Pacific economies like Japan and Australia, there's growing chatter about **China's economic slowdown** casting a shadow over the region. China isn’t directly part of these funds, but its demand impacts Pacific exporters like Australia (mining) and Japan (manufacturing). Some insiders believe that if China’s recovery stalls, the ripple effects could dent the ETF’s returns, particularly in sectors like raw materials and industrials. 3. **Australian Housing Bubble Concerns**: Australia, another major contributor to MSCI Pacific ETFs, has been at the center of rumors regarding its **overheated housing market**. Financial circles are buzzing with concerns about a potential correction in real estate prices, which could affect Australian financial stocks—heavily weighted in the ETF. Some analysts suspect that if property prices drop sharply, it could put downward pressure on the broader market, leading to underperformance in Australian equities within the MSCI Pacific. (2/2)----->(https://lnkd.in/dtkNRMNh)

Get to know the Bloomberg Emerging Market Democracies (BFREE) 🆓 Index which underpins the First Trust $EMDM ETF in this latest blog post by Steve Hou. It highlights the unique index construction 👷♂️ process by leveraging Freedom House political rights and civil liberties data while also noting the promising qualities emerging democracies represent. Gaurav Pendse #emergingmarkets #investing #bloombergindices