In today’s briefing:
- HONG KONG ALPHA PORTFOLIO (July 2025)
- CX Daily: Chinese Veteran Investment Banker Taken Away by Graft-Busters
- HEW: Wrong Policy Turnings
HONG KONG ALPHA PORTFOLIO (July 2025)
- The Hong Kong Alpha portfolio outperformed its benchmark and all Hong Kong indexes in July. The portfolio achieved these results while increasing its Sharpe ratio and reducing beta and volatility.
- The shift to the healthcare and materials sectors since Liberation Day in April has aided the portfolio’s performance. The consumer staples sector lost momentum, and we exited some positions there.
- The HSI now trades above its long-term resistance levels for the first time since 2022. This signals a good time to rotate back into market leaders in tech.
CX Daily: Chinese Veteran Investment Banker Taken Away by Graft-Busters
- Chinese veteran investment banker taken away by graft-busters
- Ding Wei, a former chairman of investment banking giant China International Capital Corp. Ltd.’s (CICC) private equity subsidiary, has been taken away by Chinese graft-busters, Caixin has learned from sources with knowledge of this matter.
- An Yuan, an executive at the subsidiary, CICC Capital Operation Co. Ltd., has also been unreachable recently, the sources said.
HEW: Wrong Policy Turnings
- As soon as a data point calms nerves around a theme, a hawkish challenge seems to appear. This week, that was US CPI into PPI and UK unemployment into GDP.
- A bias to ease, triggered by a one-touch round of bad news, has consequences when not sustained. The BoE’s early start to its easing cycle has proved to be a policy mistake.
- Next week is a prime opportunity for Chair Powell to calm dovish excitement about Fed easing. UK inflation seems set to rise by another tenth, while the EA rate sticks at 2%.
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