What game is Blackrock playing?

Discussion in 'Wall St. News' started by themickey, Aug 18, 2021.

  1. themickey


    Surely you jest! :) In Australia there are quite a few mining stocks with Chinese directors, they nearly always have a history of sinking, I look out for heavy Chinese influence in stocks and avoid. Milk powder companies are another good example, there are a few listed on ASX and they are wrecked by the Chinese imo. Chinese business fuck up everything unless its 100% Chinese - .....even then.
    Its their short term profit mentality and get to where you want to go via shortcuts.
    China has this mentality to screw the West, like Russia, they screw themselves.
    #101     Mar 14, 2022
  2. themickey


    China has this campaign against Australia, very very foolish!
    #102     Mar 14, 2022
  3. What campaign? To buy up all the real estate?
    #103     Mar 14, 2022
  4. themickey


    Yeah and simultaneously attempt at sending every company in Australia bankrupt.

    Late on Monday, Hu Xijin, the editor of the state-run Global Times wrote on Weibo that ties between Australia and its largest trading partner, China, were likely to deteriorate as much as relations between Beijing and Washington had.

    Criticising Australia for joining the US in its attacks on China, Hu wrote: “After the epidemic, we need to have more risk awareness when doing business with Australia and also when we send our children to study there.”

    “Australia is always there, making trouble. It is a bit like chewing gum stuck on the sole of China’s shoes. Sometimes you have to find a stone to rub it off,” Hu said.

    Hu’s comments echo that of China’s ambassador to Australia, Jingye Cheng, who told Australian media at the weekend that pushing for an inquiry could result in a boycott of the country’s goods. “Maybe the ordinary people will say ‘Why should we drink Australian wine? Eat Australian beef?’,” Cheng told the Australian Financial Review.
    #104     Mar 14, 2022
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  5. KGTrader4


    So much for the global economy.
    #105     Mar 15, 2022
  6. themickey



    The continuing bloodbath in Chinese stocks
    It’s been a horror stretch for those exposed to Chinese stocks, with a major benchmark - the Shanghai Composite Index - shedding about 13 per cent so far this year.

    Karen MaleyColumnist Mar 15, 2022

    Investors hoping that the Year of the Tiger might be propitious for Chinese stocks have been sorely disappointed as the vicious sell-off shows no sign of easing.

    The latest worry for investors is that Beijing could be drawn into Russia’s military campaign in Ukraine, after Russia asked China to provide military equipment as well as additional economic assistance to help counteract the battering its economy has taken from broad sanctions imposed by the United States and its allies.

    Chinese stocks are caught in a savage sell-off. Grainne Quinlan

    As a result, Beijing has been put in the difficult position of signalling public support for Russia, while trying to avoid becoming ensnared in a proxy war with the US and NATO nations that are supporting Ukraine.

    And while China will likely offer support for the beleaguered Russian economy by continuing to buy its oil, gas, coal, wheat and metals, it runs the risk of facing punitive Western sanctions if it agrees to supply arms to the Russian military.

    At the same time, investors have been rattled by China’s worst outbreak of COVID-19 since the pandemic began, which resulted in authorities imposing lockdowns in manufacturing hubs Shenzhen and Changchun.

    China’s zero-COVID-19 policy stance will cause the world’s second-largest economy to brake sharply.

    Last week, the US Securities and Exchange Commission added to investor skittishness by provisionally naming five companies – including the biotechnology group BeiGene and Yum China Holdings – that could be subject to delisting if they don’t comply with US auditing disclosure requirements by 2024.

    More Chinese companies are expected to be added to the SEC’s provisional list in coming weeks.

    Meanwhile, Beijing is showing no sign of relenting in its regulatory crackdown on big tech.

    Already, Chinese internet stocks have fallen more in the past 13 months than US technology companies did during the dotcom bust of the early 2000s.

    All the same, Chinese regulators are continuing to toughen the regulations for fintech platforms, with the Wall Street Journal reporting that the social media and video game behemoth Tencent Holdings is facing a potential record fine for anti-money laundering violations related to its WeChat Pay mobile network.

    Shares in the Hong Kong-listed Tencent have shed more than half their value in the past year, while Chinese e-commerce giant Alibaba, which is listed on the New York Stock Exchange, has seen its share price tumble by almost two-thirds.

    In the past month alone, the iShares MSCI China exchange-traded fund has fallen 26 per cent, bringing its total decline in the past year to 46 per cent.

    Chinese stocks are also suffering as global funds managers start to reassess the risks associated with investing in countries led by autocrats.
    BlackRock, the world’s largest asset manager, has marked down the value of its Russian assets by some $US17 billion ($23.6 billion), after Western sanctions imposed after Russia invaded Ukraine rendered the vast majority unsaleable.

    And index providers, including MSCI, FTSE Russell and S&P Dow Jones, have removed Russian stocks from their benchmark indices.

    But while it is relatively easy for investment managers to remove Russian stocks – which make up less than 2 per cent of most emerging markets indices – from their portfolios, it is a much more challenging exercise for them to avoid China, which makes up about 30 per cent of most emerging market indices.
    #106     Mar 15, 2022
  7. themickey


    Now Shanghai faces an expat exodus
    Strict pandemic lockdowns in Shanghai are accelerating the exodus of expats from China's premier global business hub, according to media reports.

    David Sapsted 26 April 2022

    A survey by the American Chamber of Commerce last month found that more than 80% of companies with international workforces reported that China's pandemic policies had affected their ability to attract or retain foreign staff.And a recent report by the British Chamber of Commerce in China suggested that international schools in China could see at least 40% of teachers leaving ahead of the next school year - a move that, in itself, could prompt other expat families to relocate.

    China has lost about 50% of all European expats since the pandemic started

    Jörg Wuttke, president of the European Union Chamber of Commerce in China, told CNN that China had lost about 50% of all European expatriates since the pandemic started. "I wouldn't be surprised if another half of (those remaining) leave," he said.The experience in Shanghai would appear to mirror that of Hong Kong, where the severity of Covid restrictions has been exacerbated by strict new security laws imposed on the former British colony by Beijing.According to official immigration data, more than 180,000 people left Hong Kong in February and March, while only about 39,000 entered.

    But in mainland China, the pandemic appears to be only accelerating a longer-term trend. The number of expats in Shanghai fell by more than 20% over the past decade - from 208,000 in 2011 to about 164,000 last year.The drop in numbers has been even more extreme in Beijing, where the total of foreign residents declined to 63,000 last year - a drop of about 40% since 2010.

    Shanghai: a stronger base for business in China than Hong Kong

    Shanghai, however, is of vital commercial importance to China, playing host to the nation's highest concentration of foreign business activity.“Hong Kong was also once a gateway into China for foreign companies, but as China developed, Shanghai became a stronger base for business operations and over 700 foreign companies have regional headquarters in Shanghai today,” Kenneth Jarrett, senior adviser on China at global business strategy firm Albright Stonebridge Group, told Al Jazeera.“The foreign business community plays a major role.

    Foreign companies account for 20% of Shanghai’s employment, 50% of its R&D, and 67% of the trade value of imports and exports, per government statistics.”Bill Russo, the founder of Automobility, a consultancy focusing on China’s automotive industry, described Shanghai as “irreplaceable” for the foreign business community.“There is nowhere else in China that comes even close for foreigners in terms of a favourable business environment to operate in,” he said.

    Shanghai: even the "hardiest" of expats might decide to leave because of the latest Covid strategies

    The French news agency AFP reported this week that there were signs that "even the hardiest" of Shanghai's overseas community, who work in a range of sectors including tech, finance and education, might decide to leave.

    One long-time British resident in the city told AFP they planned to repatriate over worries that the latest lockdown marked the beginning of a "really crazy direction" in virus policies, adding, "Zero Covid is like a belief now - a really fervent belief."

    Jens Hildebrandt, a member of the German Chamber of Commerce's North China branch, told the agency that tight entry controls had left some multinationals struggling for months to bring in new specialists as others left. He warned that current lockdown measures "will leave their marks in the long run".

    CNN pointed out that driving expat departures was China's adherence to an uncompromising zero-Covid policy that relied on a combination of strict border quarantines, home lockdowns and mass testing in a bid to stamp out infections.

    Alex Duncan, founder of Shanghai-based marketing startup KAWO, told Al Jazeera, “There has been a huge exodus growing since Covid first began. But this (latest) lockdown forced those who’d been considering leaving for a while, to make a final decision.”
    #107     May 2, 2022
  8. VicBee


    Woulda, coulda, shoulda... the article doesn't evidence more than common sense. What is more worrisome is China only obsession with zero covid policy when the rest of the world has walked away from it. If the pandemic highlights such lack of rational, what will happen when Taiwan eventually becomes Ukraine?
    #108     May 2, 2022
  9. themickey


    BlackRock downgrades Chinese stocks to neutral as the world's largest asset manager sees a 'rapidly worsening' outlook for the country's economy
    Carla Mozée 14 hours ago
    People in Beijing line up for COVID-testing. Photo by Kevin Frayer/Getty Images
    • BlackRock on Monday cut its view on Chinese stocks to neutral from overweight.
    • Risks are rising for China over its ties to Russia during the Ukraine war, said the money manager.
    • COVID lockdowns also threaten to slow activity in the world's second-largest economy.
    China's ties to Russia and dimming growth prospects for the world's second-largest economy prompted BlackRock to cut its view on Chinese stocks and bonds on Monday.

    The tactical view on Chinese stocks and debt was pulled down to neutral from slightly overweight on a six- to 12-month basis. Investment-grade credit and European government bonds were upgraded to neutral.

    "We see a growing geopolitical concern over Beijing's ties to Russia. This means foreign investors could face more pressure to avoid Chinese assets for regulatory or other reasons," said BlackRock.

    China's Foreign Ministry said last month it will "strengthen strategic coordination" with Russia no matter what, after Moscow has been hit with a range of Western sanctions for its invasion of Ukraine in late February.

    Trade between China and Russia rose roughly 30% to about $38 billion during the first quarter of 2022, according to Vice Foreign Minister Le Yucheng. China's exports to Russia include electronics and machinery, while Russia sells oil and other commodities to China, the world's largest oil importer.

    Investors have also been spooked by Beijing's crackdown on the technology sector , contributing to the MSCI China Index's 18% drop this year through the end of April.

    "We previously kept our modest overweight on Chinese assets because we saw improved valuations making up for the risks. The rapidly worsening outlook for China's growth on widespread lockdowns to curtail a COVID spike has changed this," said Jean Boivin, head of BlackRock Investment Institute, in a weekly note published Monday. "China's policymakers have heralded easing to prevent a growth slowdown – but have yet to fully act."

    China has committed to a zero-tolerance policy in fighting this year's wave of coronavirus infections, prompting officials to impose lockdowns affecting millions of people in Shanghai and other areas including the manufacturing hub of Shenzhen. China earlier this year forecast an economic expansion of 5.5%, the lowest target since 1991.

    Meanwhile, yields on Chinese government bonds have fallen below those on US Treasuries, "eroding their previous appeal as a source of potential coupon income," said BlackRock.

    The Federal Reserve's fight against inflation has spurred the Fed to begin raising interest rates, leading to a jump in yields on US Treasury bonds. The widely watched 10-year bond yield has surpassed 3% for the first time since 2018.
    #109     May 10, 2022
  10. themickey


    Better late than never.
    #110     May 10, 2022