Asia Economist and CEO, Centennial Asia Advisors

Manu Bhaskaran

Asia Economist and CEO

Centennial Asia Advisors

At Centennial Asia Advisors, we tell it like it is. We have no vested interests, no need for a China wall, and no reason to skew our outlook any other way. With over 30 years experience covering Asia’s political economy, you can be sure our conclusions and analyses are based on the unadulterated facts. Through years of fine-tuning our research methodologies, we deliver a quality of macroeconomic analysis few other houses can match.

Centennial Asia Advisors is an independent research and advisory firm that works with governments, multilateral institutions, financial firms and leading MNCs.

Economic Policy and Strategic Advisors

Macroeconomics

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Official manufacturing purchasing managers index (PMI) edged up to 49.7 in Dec 15 after hitting a three-year low of 49.6 in November. Encouragingly, the sub-indices for production rose as did new orders. However, the employment sub-index fell slightly.</li>
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Official non-manufacturing PMI rose to its highest since August 2014 at 54.4 with new orders expanding vigorously, a good portent for future activity. Employment also gained traction.</li>
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China Caixin PMI contracted to 48.2 in Dec 15, down from 48.6 in…</li>
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Official manufacturing purchasing managers index (PMI) edged up to 49.7 in Dec 15 after hitting a three-year low of 49.6 in November. Encouragingly, the sub-indices for production rose as did new orders. However, the employment sub-index fell slightly.

Official non-manufacturing PMI rose to its highest since August 2014 at 54.4 with new orders expanding vigorously, a good portent for future activity. Employment also gained traction.

China Caixin PMI contracted to 48.2 in Dec 15, down from 48.6 in…


China: Stronger Services Only Partly Offsetting Weak Manufacturing - Policy Action Likely

Chinese growth may surprise on the upside in early 2016 but rebound will not be sustained<ul><li>Stimulus measures put in place over the course of 2015 are producing results as seen in the recovery in real estate prices and activity as well as in the rise in new orders in the PMI data. Growth in early 2016 could well surprise positively as a result. The question is whether that bounce will be sustainable.</li></ul><ul><li>However, the accumulating evidence of rising financial stresses, sharp falls in industrial sector…</li></ul>

Chinese growth may surprise on the upside in early 2016 but rebound will not be sustainedStimulus measures put in place over the course of 2015 are producing results as seen in the recovery in real estate prices and activity as well as in the rise in new orders in the PMI data. Growth in early 2016 could well surprise positively as a result. The question is whether that bounce will be sustainable.However, the accumulating evidence of rising financial stresses, sharp falls in industrial sector…

2016 Surprises: What Are the Key Turning Points Within Asia?

Global Asset Allocation, Politics & Governance, Ecstrat

John-Paul Smith

Global Asset Allocation, Politics & Governance

Ecstrat

Ecstrat is a consultancy advising on asset allocation between global equity markets, with a focus on the intersection of governments, geopolitics, governance and markets.
 
Over the past few years and more especially since the Great Financial Crisis (GFC), investors have become more focused on short-term market movements and real-time returns and have consequently neglected the analysis of the underlying structural themes that underpin longer term performance.
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More specifically we believe that the evolution of governance-based relationships between investors, controlling shareholders, labour and the state is one of the primary determinants of both relative and absolute performance between individual equity markets.
 
We will endeavour to provide investors with some of the context surrounding governance-related issues which encompass many different disciplines including history, economics and political science, as well as the financial metrics which are the most obvious manifestation of the structural characteristics of each market.
 
We will pay particular attention to the shifts and potential inflection points for governance in individual markets as these are often the best lead indicators for both economic and market performance.

Cross Asset Strategy

After an intriguing 2015 when the economy surprised to the downside by the stock market performed "relatively" well, China is amongst our main concerns for 2016 as the signs pointing to a "sudden stop" continue to grow.

After an intriguing 2015 when the economy surprised to the downside by the stock market performed "relatively" well, China is amongst our main concerns for 2016 as the signs pointing to a "sudden stop" continue to grow.

<ul><li>Chinese economic indicators pointed to a lacklustre domestic economy that is not showing any signs of an uptick, save for stronger consumption spending.</li><li>External pressures are growing for China . Furthermore, despite tepid domestic conditions, Chinese firms are extending their borrowing streak; cross-border claims continue to climb.</li><li>While the Yuan has hovered around a 4-year low, sparking speculation of a managed depreciation to spur growth, we do not think that a depreciation would be engineered by the government. Read more to see why.&nbsp;</li></ul>

Chinese economic indicators pointed to a lacklustre domestic economy that is not showing any signs of an uptick, save for stronger consumption spending.External pressures are growing for China . Furthermore, despite tepid domestic conditions, Chinese firms are extending their borrowing streak; cross-border claims continue to climb.While the Yuan has hovered around a 4-year low, sparking speculation of a managed depreciation to spur growth, we do not think that a depreciation would be engineered by the government. Read more to see why.&nbsp;

China: CNY Depreciation Fears Heighten, No Easy Policy Options

China: Economic decline evident from negative data releases<ul>
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Industrial profits fell by 4.6% y/y in Oct 15, down from the 0.1% y/y decline in Sep 15.</li>
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MNI Consumer Sentiment rose to 113.1 in Nov 15 (109.7 in Oct 15).</li>
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MNI Business Sentiment Index fell to 49.9 in Nov 15, a 5-month low.</li>
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Minxin manufacturing and non-manufacturing PMIs declined in Nov 15 to 42.4 and 42.9 in Sep 15 after two months of increases.</li>
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Baidu SME Index for small- and medium-sized enterprises dropped to 98.2 in Nov 15 from 98.4…</li>
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China: Economic decline evident from negative data releases

Industrial profits fell by 4.6% y/y in Oct 15, down from the 0.1% y/y decline in Sep 15.

MNI Consumer Sentiment rose to 113.1 in Nov 15 (109.7 in Oct 15).

MNI Business Sentiment Index fell to 49.9 in Nov 15, a 5-month low.

Minxin manufacturing and non-manufacturing PMIs declined in Nov 15 to 42.4 and 42.9 in Sep 15 after two months of increases.

Baidu SME Index for small- and medium-sized enterprises dropped to 98.2 in Nov 15 from 98.4…


China

iShares FTSE A50 China Index ETF is an exchanged-traded fund established in Hong Kong. The investment objective of the iShares FTSE A50 China Index ETF is to provide investment results that, before fees and expenses, closely correspond to the performance of A50 Index.

iShares FTSE/Xinhua A50 China (2823 HK)

China: Stronger Services Only Partly Offsetting Weak Manufacturing - Policy Action Likely

Official manufacturing purchasing managers index (PMI) edged up to 49.7 in Dec 15 after hitting a three-year low of 49.6 in...

Manu Bhaskaran

2016 Surprises: What Are the Key Turning Points Within Asia?

Chinese growth may surprise on the upside in early 2016 but rebound will not be sustainedStimulus measures put in place over the course of 2015 are...

Manu Bhaskaran

A "Sudden Stop" For China in 2016?

After an intriguing 2015 when the economy surprised to the downside by the stock market performed "relatively" well, China is amongst our main...

John-Paul Smith

China: CNY Depreciation Fears Heighten, No Easy Policy Options

Chinese economic indicators pointed to a lacklustre domestic economy that is not showing any signs of an uptick, save for stronger consumption...

Manu Bhaskaran

Cross-Straits Warning Signs

China: Economic decline evident from negative data releases Industrial profits fell by 4.6% y/y in Oct 15, down from the 0.1% y/y decline in Sep...

Manu Bhaskaran