Asia Pacific

13 Feb 2017   Asia Pacific, Macro, Policy

India’s Bond Market Could Dominate EMs in 2017

India’s efforts to curtail the shadow economy and go cashless, coupled with fresh measures introduced by the country’s securities regulator and contained within the latest government budget, are likely to give a big boost to India’s bond market in 2017 despite a number of headwinds that could continue to challenge emerging markets. The development of a viable secondary market could be within reach.

Is China's Real Estate Market Headed for ‘Overleverage’ Territory?

The real estate sector in China is set to cool off in 2017 after the Chinese government enacted a series of measures to prevent a bubble following skyrocketing housing prices seen over the past two years.

China and Shadow Financing

For the first time, the president of China was in attendance at the World Economic Forum Annual Meeting in Davos this month. President Xi Jinping joined a roster of presidents, prime ministers, central bankers, executives and other officials from around the world at this prestigious event, which carried the theme this year of “responsive and responsible leadership.”

In Indonesia’s JP Morgan, Hints of Turkey, Brazil Retribution for Unfavourable Forecasts Persist

As the risk of emerging market capital outflows continues to increases, EM government have become more sensitive to unfavourable reports by international institutions.

Capital Outflows Threaten China’s Transition to Demand-Driven Model

With official agencies admitting to US$540bn in capital outflows since June, and independent estimates standing at twice that, clouds are gathering over the Chinese economy as it transitions from supply to demand-driven model. But some analysts remain upbeat about the country’s long-term prospects.

TPP’s Demise Signifies Wider US Weakness in Asia

The Trans-Pacific Partnership’s (TPP) future is hanging in the balance. Although most involved will not lose out much if the deal falls through, some will forgo significant economic benefits. The deal will likely be replaced by a Chinese variant, which points to the larger demise of US influence in Asia, and China’s growing political clout rise in the region.

Miner’s Canary of FI Consolidation in Kenya: Mauritius’ SBM to Acquire Fidelity

SBM’s acquisition of Kenya’s Fidelity Commercial Bank Ltd. shows there is plenty of interest among foreign lenders in Kenyan equity, but the symbolic one dollar price indicates that smaller entities are still under threat.

Welcome Chinese SOE Reform Could Face Hurdles

China is soon to list which state-owned enterprises will undergo restructuring as part of the country’s ongoing reform plans. Although the plans are designed to increase the SOEs’ competitiveness against their foreign counterparts and free up capital to other parts of the economy, implementation could prove harder to see through, with consequences of the late 1990s state-sector reforms still fresh in the minds of many.

Copper Rallies as Markets Price in US Infrastructure, China’s Growth

Copper has been one of the top-performers in commodities markets this month. While investors agree its value has overshot, they still expect to see demand strengthening relative to supply in the next five years.

Malaysian NDF Ban Reinforcement Puts Investors on Back-Foot

Malaysia’s Central Bank recently began reinforcing a ban on offshore Malaysian ringgit trades in a bid to improve monitoring and management of an already battered currency. Some analysts believe the move, which comes at a time when EM sentiment is already quite fragile, may threaten foreign fixed income investment and FDI in the country.

 

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