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HONG KONG, Oct 25 (Reuters) - Hong Kong's efforts to revive its shrinking stock market are mere stopgap solutions, as analysts say a reversal in fortunes for Asia's premier financial hub would not be possible without a major improvement in China's economic prospects. With a market value of around $4.3 trillion, Hong Kong is home to one of the top-ranked stock markets globally just behind those in the United States, Japan, China and Europe. New share offerings in Hong Kong have fizzled. Local media reported that a record 47 of the 638 trading participants on the Hong Kong exchange shut shop last year. Chinese firms listed in Hong Kong, such as tech giants Tencent (0700.HK) and Alibaba (9988.HK), comprise the bulk of the turnover on the Hong Kong exchange, leaving Hong Kong hostage to China's fortunes.

Persons: Hong, John Lee, Dickie Wong, Rob Brewis, Aubrey, Eddie Tam, Alvin Cheung, Cheung, ”, Alex Wong, Alex KY, Wong, who'd, Summer Zhen, Xie Yu, Vidya Ranganathan Organizations: Nasdaq, Kingston Securities, Seng China Enterprises, HK, Aubrey Capital Management, Hong, Asset Investments, Prudential, Asset Management Company, Global, Thomson Locations: HONG KONG, China, Hong Kong, United States, Japan, Europe, Shenzhen

☆ S.Korea c.bank warns of financial stability risk as debts rise
▼ + stars: | 2023-07-17 | by ( ) www.reuters.com time to read: +2 min

SEOUL, July 17 (Reuters) - South Korea's central bank said on Monday there was a need to manage financial stability in addition to price risks as the country's high household debts have started to climb. "In terms of monetary policy, it should consider financial stability more actively to prevent excessive leveraging or risky asset investments when monetary policy is loose," the Bank of Korea (BOK) said in a report. "There is a need to discuss introducing a 'prudential monetary policy' with higher consideration on financial stability, in addition to price stability," the central bank said. The central bank said in the report there was limited financial stability risk from household debt, given the low loan-to-value ratio and the high percentage of high-income earners, but it flagged negative long-term implications on growth and inequality. The BOK has kept monetary policy unchanged since its last interest rate hike in January and its tightening campaign, which began in August 2021, is widely expected to be over.

Persons: BOK, Jihoon Lee, Jacqueline Wong Organizations: Bank of Korea, prudential, Bank for International Settlements, Thomson Locations: SEOUL, Switzerland, Australia

☆ China GDP: Economy grows 6.3% in Q2 compared with low base
▼ + stars: | 2023-07-16 | by ( Laura He | ) edition.cnn.com time to read: +1 min

Hong Kong CNN —China’s economy expanded by 6.3% in the second quarter from a year ago because of a low base, with momentum slowing following a strong reopening in the first quarter. Compared to the first quarter, gross domestic product grew just 0.8% from April to June, according to data from the National Bureau of Statistics (NBS). Last year, harsh Covid-19 lockdowns wreaked havoc in the world’s second largest economy, including in the financial hub of Shanghai. The economy rebounded strongly In the first quarter after the lifting of pandemic restrictions, with GDP growing at 4.5%. Youth unemployment hit another record high, with the jobless rate for those ages 16 to 24 reaching 21.3% in June.

Organizations: Hong Kong CNN, National Bureau of Statistics, Reuters Locations: Hong Kong, Shanghai, Beijing

☆ JP Morgan asset managers buck the doomsayers of Wall Street, predicting a better 2023 for stocks and bonds
▼ + stars: | 2022-12-09 | by ( Anil Varma | ) www.businessinsider.com time to read: +5 min

JP Morgan Asset Management sees a better 2023 for stocks, even as big Wall Street banks warn of sharp falls. "The worst of the market volatility is behind us and both stocks and bonds look increasingly attractive," JP Morgan Asset said. More interest-rate rises look limited, bringing some cheer for markets in 2023, top asset manager Janus Henderson agreed. Here's a selection of commentary and predictions from the two asset managers on 2023 investment prospects. JP Morgan Asset Management"Our base case sees a moderate recession in most major developed economies in 2023.

☆ Is it time to buy Treasurys? Here's how to allocate your portfolio, according to the pros
▼ + stars: | 2022-09-23 | by ( Weizhen Tan | ) www.cnbc.com time to read: +5 min

The latest threat to stocks now isn't any macro risk — it's rising 2-year Treasury yields, according to some fund managers and strategists. Short-term, relatively risk-free Treasury bonds and funds are back in the spotlight as the yield on the 2-year Treasury continues to surge. Meanwhile, U.S.-listed short-term Treasury ETFs have attracted $7 billion of inflows so far in September — six times the volume of inflows last month, BlackRock said. Here's what analysts say about how to allocate your portfolio right now. This sees investors put 60% of their portfolio in stocks, and 40% bonds.

With interest rates back then already close to zero, they had run out of conventional ammunition to ward off the threat of outright deflation they feared would choke off the economic recovery. As one Danish bank vaunted the world's first negative rate mortgage, it is likely that cheap borrowing added steam to house price spikes across the region. "It's the central bankers who have taken interest rates to a level where we attach no value to the future," he said. As the negative rate era closes, the global pool of assets with negative yield has shrunk to less than $2 trillion from a 2020 peak of some $18 trillion. "I am very doubtful anyone here is ready to say never again for negative rates."

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