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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAs a low-yielding currency, is the Chinese Yuan the next carry trade to unwind? Monica Hsiao from Triada Capital says the carry trade in Chinese Yuan is more about exporters hoarding U.S. dollars and less about speculative trades in tech stocks like what the Japanese Yen is used for.
Persons: Yuan, Monica Hsiao Organizations: Triada Capital
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailNo 'huge reflationary' consumer demand in China without property sector recovery: Hedge fundMonica Hsiao, chief investment officer and founder of Triada Capital, says much of China's urban wealth is tied to property as an asset.
Persons: Monica Hsiao Organizations: Triada Locations: China
The rout has sparked concern that the fallout could also affect, more broadly, confidence in India. GEORGE BOUBOURAS, HEAD OF RESEARCH AT K2 ASSET MANAGEMENT, MELBOURNE (UNDERWEIGHT ON INDIA)"The Adani effect works both ways given the market cap relative to index. "To attract more capital the Indian economy needs more FTAs (free-trade agreements) and more financial market reform - a long process." Given there has not been any significant change for now for the market valuation, the market remains overall expensive in our view." Adani is a known levered name in India, so I would think most participants should not associate the same issues for other Indian assets."
Many holders of China high yield bonds have seen them trading below 20 cents on the dollar. The in-default bonds of property company Sunac China (1918.HK) maturing in 2025 trade at 6 cents to a dollar. The average return of the top 10 Asia high yield bonds is down more than 30% this year, Morningstar data shows, of which Fidelity Funds' Asian High Yield Fund and UBS's SICAV - Asian High Yield (USD) had shed more than 40% as of Oct. 27. Value Partners’ Greater China High Yield Income Fund was down 37% as of the end of September. While there are select bonds that have upside, China high yield as an asset class is currently “uninvestable", she said.
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