July 6, 2022 | Daily JAM |
The People’s Bank of China slashed its daily short-term liquidity operation to 3 billion yuan ($447 million) this week, the smallest amount since January 2021. At this pace, it’s likely to remove more cash in the first five days of July than it injected at the end of June. At the current rate, the People’s Bank would drain a net 428 billion yuan ($64 billion) of cash in the first five days of July, more than the 400 billion it injected at the end of June. The move looks like an effort to “normalize” China’s financial markets after a period when the People’s Bank added cash to the system in an effort to lower interest rates and increase lending in order to stimulate economic growth after Pandemic lockdowns crushed China’s economy. And to bring monetary policy at China’s central bank in line with that at other central banks that are raising interest rates. Efforts to drain liquidity from the financial system are never good for China’s stock market.
March 16, 2022 | Daily JAM, FXI, Jubak Picks, Morning Briefing, Perfect Five-ETFs, TCEHY, Top 50 Stocks |
Yesterday, March 15, I was thinking that I wished I didn’t own any China stocks at all. Today, March 16, I wished I owned more. Lot’s more.
February 8, 2022 | BABA, Daily JAM, FXI, JD, Morning Briefing, Perfect Five-ETFs, TCEHY, Top 50 Stocks |
With the end of the Lunar New Year holiday and the reopening of China’s stock markets, China’s state-backed investment funds have started buying shares of the Chinese stocks traded on U.S. markets. The move follows actions by the People’s Bank of China to inject cash into the economy and financial markets.
December 13, 2021 | Daily JAM, Morning Briefing |
Economists predict that China will add significant stimulus to its economy early in 2022. That’s just speculation at this point but it makes very solid sense given: 1. The likely slowdown in China’s economic growth in the fourth quarter of 2021. 2. A likely official growth target for 2022 of 5% or more 3. The Chinese Communist Party’s sense that ideology is no longer enough to keep China’s people fully behind Party rule and that growth of better than 5% is is a key part of the Party’s contract with the average Chinese citizen.
September 28, 2021 | Daily JAM |
More bad news on a slowdown in China's economic growth. Profit growth at China’s industrial firms co... To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing...
September 22, 2021 | Daily JAM, FQVLF, Morning Briefing, Top 50 Stocks, VWAPY |
I’d call the policy being followed by the People’s Bank in the China Evergrande crisis “Try to support the markets but see how little we can get away with.” Today Chins’s central bank supplied liquidity to the country’s financial markets with an injection of short-term cash. But the move fell far short of the kind of “Charge of the People’s vanguard” that the bank has mustered in earlier crises. And, importantly, there was no big statement of market support to go with today’s actions.
September 20, 2021 | ALB, Daily JAM, Morning Briefing |
The Standard & Poor’s 500 fell another 1.70% today and it’s now down 3.94% from the September 2 high. As the index dropped last week (again) and over the weekend, lots of Wall Street money managers said Hey, stocks were over-valued and news from Beijing and Washington (and places in between) is negative, but if stocks drop 5% we will be buyers. It looks like might get to test that conviction sooner than anyone expected. Which way will things break on another decline?
May 12, 2020 | Daily JAM |
Think of it as a first step toward a policy move and not as an actual plan for action. In its quarterly monetary policy report released Sunday, the People’s Bank of China said it will resort to “more powerful” policies to counter unprecedented economic challenges from...
February 19, 2020 | Daily JAM, Short Term |
U.S. stocks were up strongly today on news that the central banks of the United States and China were likely to continue to provide cheap--and cheaper--liquidity to financial markets and economies. In minutes of its January 29 Open Market Committee meeting released...
February 1, 2019 | Daily JAM |
Once upon a time--as late as 2018--the consensus thinking in financial markets was that the Federal Reserve was but the first central bank to raise interest rates. Other central banks, most notably the European Central Bank, (but not the Bank of Japan, which may never...
March 17, 2018 | Uncategorized |
Lots and lots of big macro potentially market moving news this week. Events range from the first 2018 meeting of Group of 20 finance ministers to an almost certain interest rate increase from the Federal Reserve to the effective date for U.S. tariffs on steel and aluminum
May 13, 2017 | Daily JAM, Friday Trick or Trend |
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...
