Emerging Markets Daily - January 19
The 5 EM Stories You Need to Start Your Day
The Top 5 Emerging Markets Stories You Need to Start Your Day - January 19
China Stocks Cool, Mainland Investors Eye Hong Kong With Heavy Cash Flows - Bloomberg
“Chinese stocks saw losses accelerate Tuesday afternoon, with the CSI 300 Index closing at the lowest in nearly two weeks as mainland investors rotated into Hong Kong-listed shares.”
“The CSI 300 Index of firms listed in Shanghai and Shenzhen closed 1.5% lower, with consumer discretionary and material stocks leading declines. While that move sent Chinese equities further away from a 13-year high -- which they hit last week -- inflows from the mainland into Hong Kong stocks had another record day, hitting $3.4 billion on Tuesday,” Bloomberg reports.
China Corporate Defaults Headed for Record-Breaking Year - South China Morning Post
“China’s corporate defaults may set a record this year when a trio of the central bank’s debt limits kick in this month, as they crimp the ability by borrowers to use loans to repay their outstanding debt.”
“One in five of China’s biggest real estate developers including China Evergrande Group will be barred from borrowing any more money from banks according to the three red lines on debt drawn by the People’s Bank of China, the state-owned Economic Information Daily said,” South China Morning Post reports.
Indian Stocks Surge, Led by Reliance Industries and HDFC - LiveMint India
“Indian stock market benchmark Sensex soared 834 points today, tracking strong gains in index majors HDFC twins and Reliance Industries amid an upbeat trend in global markets. The 30-share BSE index ended 834 points higher at 49,398 while the broader NSE Nifty surged 1.7% to 14,521. With today's gains, Sensex has now recovered most of losses of the previous two sessions. Sensex had lost more than 1,000 points in two sessions. Here are 10 things to know about today's market move,” LiveMint India reports.
Nigeria Central Bank Eyes Rate Hikes Amid Rising Inflation - The Nation (Nigeria)
“The Central Bank of Nigeria (CBN) may be forced to adjust its hold-down position and increase benchmark interest rate as inflation surged by its largest rise in eight years to 15.75 per cent.”
“Most analysts said they expected continuing rise in inflation, which may put the apex bank in a delicate balance at its next monetary policy meeting early next week. Most analysts expect upward review of the benchmark Monetary Policy Rate (MPR), which was retained at 11.5 per cent at the last meeting,” The Nation reports.
Proprietary Firms Eager to Trade EM - China, India, Saudi Arabia pique interest - Institutional Asset Manager
“Overall 85 per cent of senior proprietary trading respondents are interested in trading emerging markets and 74 per cent are expecting to start taking market data or begin trading on a new emerging or frontier market over the next 12 months."
”China is highlighted as the country of most interest with 56 per cent of respondents planning to connect or take market data from an exchange in China over the next 12 months for the first time. India is also flagged as of particular interest for 52 per cent of respondents, albeit it with additional barriers to entry as a result of difficulties in accessing onshore markets via an international GCM.”
”Saudi Arabia is also attractive, driven in part by Saudi Arabia’s stock market, Tadawul, launching its derivatives market in August with plans to launch futures and options contracts in the coming 12-24 months. In South America, Brazil and Mexico were highlighted as key markets of interest,” Institutional Asset Manager reports.Seeking Alpha EM ETFs Tracker (Live Updates)