Straits Advisory’s Post

Asian Investors Shift Focus to US Markets 🇺🇸 Asian business owners and family offices are ramping up investments in U.S. equities and real estate, buoyed by optimism around pro-business policies. Kurt G. Rademacher and Marcus Yorke-Long of Charles Russell Speechlys attribute this trend to tax reforms and the perceived stability of U.S. markets. Françoise Huang of Allianz Trade notes that global supply chain shifts are also opening doors for Asian economies like Vietnam and Indonesia, creating a ripple effect of opportunities. However, with challenges such as tariffs and complex tax compliance, strategic planning is essential for long-term success. Original article by Angela Tan for The Straits Times. Read more in the link in the comments. Follow Straits Assets (Singapore) for more curated insights. A Straits42 Group #USMarkets #AsianInvestors #GlobalGrowth #EconomicStrategy

Trump’s Return May Uplift China, Japan Markets Amid Trade Shifts Asia’s resilience amid Trump’s return, with strong exports, China’s demand boost, and India’s growth, keeps investors promising, contrasting Europe’s declines #chinamarket #japanmarket #USAToday #InvestorOpportunity #chinainvestments #JPMorgan #stockmarket #marketingstrategy #asiansector https://lnkd.in/dhJAn4dy.com%2Ftrumps-return-may-uplift-china-japan-markets-amid-trade-shifts%2F&utm_campaign=aga&utm_source=agsadl2%2Csh%2Fx%2Fgs%2Fm2%2F4

Investors across Asia have ramped up bets on potential winners from Donald Trump’s imminent return to the White House, fueling big jumps in some popular stocks. The Republican candidate’s election victory led to rallies in the shares of Korean shipbuilders, Indian electronics manufacturers, Australian steel suppliers and even Vietnamese industrial parks. The common thread: a belief that these companies can benefit from tougher restrictions on global trade, which will squeeze supply chains but create opportunities for nimble firms. “Some emerging markets investors have started looking beyond the top down approach to the Trump trade with specific pockets of opportunity for alpha generation,” said Nirgunan Tiruchelvam, an analyst at Aletheia Capital in Singapore, adding that “sector-focused narratives have started forming.” Companies adopting the ‘China Plus One’ strategy will also invest more in Southeast Asia, Maybank Kim Eng Securities analyst Chak Reungsinpinya wrote in a note dated Nov. 6. “Tariff and fiscal risks are back on the table,” said Charu Chanana, chief investment strategist at Saxo Markets. “This could work to the advantage of China Plus One beneficiaries, particularly India, with its significant structural strengths in demographics and infrastructure spending.” “Across Asia, industries from defense to electronics are benefiting from the US pivot away from China,” said Billy Leung, an investment strategist at Global X ETFs. “To me this isn’t just trade redirection — its like a sectoral reshuffle.” Contact us today, and let us demonstrate how can elevate your portfolio to new levels Contact Us: https://lnkd.in/gy7_gSAb Website: alphabinwanicapital.com Free Newsletter: bit.ly/AlgoNewsletter #Investing #ThematicInvesting #AI #TrumpAsia

Why did investor enthusiasm for #China’s markets fade so quickly? 📉 After an initial surge following the reopening of China’s stock exchanges, optimism evaporated as hopes for a detailed stimulus package from Beijing fell flat. Despite talk of a 285 billion dollar stimulus, the announcements from China’s National Development and Reform Commission lacked concrete measures, leaving international investors uncertain. Lodewijk van der Kroft of COMGEST Benelux called it a "missed opportunity," with concerns about the struggling property sector and weak domestic demand continuing to weigh on the market. The #HangSeng Index tumbled 9.4 percent on Tuesday, erasing last week's gains, while the #CSI300 saw similar struggles, shedding another 7 percent on Wednesday. Louis-Vincent Gave of Gavekal remains cautiously optimistic, citing the strong renminbi and potential benefits from policy easing. However, without more robust measures to boost consumer spending, the path to sustained recovery remains uncertain. Read more about the outlook for China’s markets and what it means for global investors. 🔍👇 https://lnkd.in/easWi2wa #China #Equities #Stimulus #HangSeng #CSI300 #GlobalMarkets #Investment #Economy #Geopolitics

How do you play China? Through Hang Seng or Shanghai? As many investors are trying to invest in China, they are confused between these two markets - Hang Seng and Shanghai. Here’s a quick take explaining these 2 markets. The Shanghai Stock Exchange (SSE) and the Hang Seng Index (HSI) differ mainly in location, investor base, and focus: SSE is in Shanghai, mainland China, and operates under Chinese regulations, listing domestic companies with trades mostly in yuan (CNY). It focuses on mainland China's economy and serves domestic investors, though some foreign access is allowed. HSI is based in Hong Kong, a more international market with trades in Hong Kong dollars (HKD). It tracks the top companies listed on the Hong Kong Stock Exchange, including many Chinese firms, and serves a more global investor base. In essence, SSE represents China's domestic market, while HSI reflects both Hong Kong and China's economies with more international participation. Shanghai market is a more diversified and well represented market when it comes to linkage with China’s economy. More emerging opportunities are present in Shanghai than in Hang Seng. Edelweiss Greater China Offshore Equity Fund invests in Hangseng, Shanghai and Taiwan market with highest exposure to Shanghai market. More details here. https://lnkd.in/dVMwJ8BY

An insightful piece in The Straits Times highlights Singapore’s upgraded 2024 growth forecast to 3.5%, driven by stellar Q3 overall performance. However, the outlook for 2025 may be tempered by global headwinds, including escalating geopolitical tensions and shifts in global leadership. Worth a read for businesses and investors navigating Southeast Asia’s evolving economic landscape. https://lnkd.in/gy6nGACn. #geopolitics; #economy; #singapore with Beth Crang and Stephenson Harwood LLP; Stephenson Harwood - Wei Tu (China) and Virtus Law LLP (Stephenson Harwood (Singapore) Alliance).

On Market View today: What to watch at the Jackson Hole Symposium; Harris and Trump on US taxes; Chinese banks keep benchmark lending rates unchanged; Bank of Thailand’s rate trajectory with new PM; Earnings expectations from US retailers Target, TJX; Keppel explores US$800M worth of energy transition, environmental sustainability opportunities in APAC Singapore shares started trading in positive territory today, mirroring overnight gains in the global markets. The Straits Times Index (STI) opened 0.1 per cent higher at 3,359.88 points after 46 million securities changed hands in the broader market. In terms of companies to watch, we have Keppel, after the asset manager today inked a memorandum of understanding with the Asian Development Bank and Enterprise Singapore to explore US$800 million worth of energy transition and environmental sustainability opportunities in the Asia-Pacific. Elsewhere, from what to watch at the Jackson Hole Economic Symposium held later this week, to the implications of possible US tax changes to global firms, more corporate and international headlines remain in focus. Glad to unpack the developments with James Cheo, CFA, CAIA, FRM, Chief Investment Officer, Southeast Asia and India at HSBC Global Private Banking and Wealth. Many thanks to James, Carina Koh and Andrew Low for joining us on MONEY FM 89.3! Catch the podcast episode on Awedio, Apple podcast and Spotify at the links below. Podcast links: https://lnkd.in/gecEntjP https://lnkd.in/gSj2WypY https://lnkd.in/givCZjVS #singapore #sgx #sti #stockmarket #us #inflation #tightening #cooling #federalreserve #fed #interestrates #ratecut #jacksonholesymposium #jeromepowell #kamalaharris #donaldtrump #taxes #corporateamerica #china #benchmarkrates #bankofthailand #leadershipchange #earnings #retailers #keppel #target #tjx #energytransition #environmentalsustainability

Private equity firms are pledging to avoid investments in China as the U.S. tightens regulations. This shift is driven by increasing geopolitical tensions and stricter U.S. rules on investments in Chinese companies. The move reflects a broader trend of decoupling between the U.S. and China in various sectors (Nikkei Asia).

Trade will be a major topic at HSBC’s Global Investment Seminar. Which begs the question: is international trade in retreat? Not in Asia, where intra-regional exports are set to grow to more than USD7 trillion by 2030, says HSBC’s Fred Neumann. Read his article on why Asia has plenty to more gain. Click to view 👉 https://grp.hsbc/6048ZZdC0 #HSBCResearch #Research #HSBCGlobalSummit #ThoughtLeadership

The ASEAN paradox: why are FDI going up but M&A deals going down? The countries forming the Association of Southeast Asian Nations (ASEAN) are expected to reach an unprecedented USD 250 billion of Foreign Direct Investments (FDI) in 2024, driven by the rapid economic development of the region, its emerging industries, and ASEAN's growing integration to global supply chains. The "China+1" strategy of international manufacturers (Chinese included) is further accelerating the relocation of assets and capabilities to Southeast Asia. But why is M&A (which should be encompassed by FDI) experiencing an 8-year low volume? High interest rates globally and uncertain geopolitical context have significantly slowed down transactions. There's also a hangover effect in the PE-VC industry from the frenzy of 2021 (see Lightspeed report "SEA: Resetting Expectations"). Funds don't deploy and dry powder keeps piling up. Hard to find good buyers for portfolio companies purchased at high valuations. Two thoughts: - A growing share of FDI is actually greenfield projects - which means value creation for local economies, in the form of new infrastructure, new capabilities and new jobs. ASEAN can be a big winner of the US-China trade war. - There is more room for corporate investors to do M&A, while funds are still in a wait-and-see mode and valuations are cooling down - that is, if they move fast enough. [FDI figures from ASEAN stats; M&A figures from LSEG, reused by DealStreetAsia. Charts by me.]