Asian Fixed Income/Frontier Market Research

Bondcritic

Bondcritic, established in 2009, is designed to be an independent credit research voice that helps investors gain insights and unbiased analyses on Asian fixed income market. Our mission is to discover deep-value Asian high-yield and distressed bonds with a bottom-up approach, together with the help of our proprietary ESG (Environmental, Social Development, and Governance) model. At the same time, we focus on bringing investment cases of unrated and unloved issuers to the general public.

China Economist

Kerry Liu

Macroeconomics

<p>On 7 October 2018, the People’s Bank of China (PBOC) announced a Renminbi Reserve Requirement Ratio (RRR) cut of 100 bps, starting on 15-October. We believe China’s further RRR cuts will be ineffective to the real economy, and could even hurt the real economy. However, the cuts will help boost asset prices (real estate, stocks and bonds). While a price cap policy on properties has been implemented across first-tier and many second-tier cities, property rent will rise accordingly</p>

On 7 October 2018, the People’s Bank of China (PBOC) announced a Renminbi Reserve Requirement Ratio (RRR) cut of 100 bps, starting on 15-October. We believe China’s further RRR cuts will be ineffective to the real economy, and could even hurt the real economy. However, the cuts will help boost asset prices (real estate, stocks and bonds). While a price cap policy on properties has been implemented across first-tier and many second-tier cities, property rent will rise accordingly

MSCI AC Asia ex Japan Index (MXASJ INDEX)

China Economics: RRR Cuts Proven Ineffective