Tokyo FinTech Association的动态

China Stimulus Plan –?China?has?announced?$1.4 trillion?(CNY 10 trillion)?5-year packages?to?support China local government debts, comprising of CNY 2 trillion per year additional debt limit?for local governments for 3 years from 2024 to 2026, and?CNY 800 million per year in special bonds?over 5 years from 2024 to 2029.? Read - https://lnkd.in/gM52CyDj follow Caproasia | Driving the future of Asia China Stimulus Plan –?China?has?announced?$1.4 trillion?(CNY 10 trillion)?5-year packages?to?support China local government debts, comprising of CNY 2 trillion per year additional debt limit?for local governments for 3 years from 2024 to 2026, and?CNY 800 million per year in special bonds?over 5 years from 2024 to 2029. Earlier in November,?China announced to reduce the capital requirements & lock-up period for investments into China A-shares for foreign strategic investors effective 2nd December 2024, for qualifying investors with proprietary assets of > $50 million or AUM > $300 million.???The existing requirements are proprietary assets of > $100 million or AUM > $500 million.???The shares lock-up period has also been reduced from 3 years to 1 year.? In 2024 September,?China announced new stimulus plan for the economy – 1) Decrease average interest rates for existing mortgages by 0.5%, 2) 15% minimum downpayment for residential homes, 3) $71 billion (CNY 500 billion) Swap Program to allow access to funding for funds, insurers & brokers to Buy stocks, 4) $42 billion (CNY 300 billion) in low interest rate loans to commercial banks by China central bank (PBOC) for share buybacks or acquisitions, 5) Decrease 7-Day Reverse Repo Rate by 0.2% to 1.5%, 6) Decrease Cash Reserve Requirement Ratios (RRR) by 0.5% freeing up $142 billion (CNY 1 trillion) of capital for lending.??

China Stimulus Plan –?China?has?announced?$1.4 trillion?(CNY 10 trillion)?5-year packages?to?support China local government debts, comprising of CNY 2 trillion per year additional debt limit?for local governments for 3 years from 2024 to 2026, and?CNY 800 million per year in special bonds?over 5 years from 2024 to 2029.? Read - https://lnkd.in/g7utugma follow Caproasia | Driving the future of Asia China Stimulus Plan –?China?has?announced?$1.4 trillion?(CNY 10 trillion)?5-year packages?to?support China local government debts, comprising of CNY 2 trillion per year additional debt limit?for local governments for 3 years from 2024 to 2026, and?CNY 800 million per year in special bonds?over 5 years from 2024 to 2029. Earlier in November,?China announced to reduce the capital requirements & lock-up period for investments into China A-shares for foreign strategic investors effective 2nd December 2024, for qualifying investors with proprietary assets of > $50 million or AUM > $300 million.???The existing requirements are proprietary assets of > $100 million or AUM > $500 million.???The shares lock-up period has also been reduced from 3 years to 1 year.? In 2024 September,?China announced new stimulus plan for the economy – 1) Decrease average interest rates for existing mortgages by 0.5%, 2) 15% minimum downpayment for residential homes, 3) $71 billion (CNY 500 billion) Swap Program to allow access to funding for funds, insurers & brokers to Buy stocks, 4) $42 billion (CNY 300 billion) in low interest rate loans to commercial banks by China central bank (PBOC) for share buybacks or acquisitions, 5) Decrease 7-Day Reverse Repo Rate by 0.2% to 1.5%, 6) Decrease Cash Reserve Requirement Ratios (RRR) by 0.5% freeing up $142 billion (CNY 1 trillion) of capital for lending.??

Higher borrowing costs continued to weigh on investments globally. Some international investors (are assessing) if there would be risk of war/conflict between China and the Philippines before investing billions of pesos or dollars into the country as a matter of prudence and as part of due diligence for investments globally. For the coming months, further cuts on BSP and the US Fed rates amid easing inflation trend would further reduce borrowing costs that would help spur greater global investments. https://lnkd.in/gUvwT5G2

New form of bond emerges from Sri Lanka’s $13bn restructuring talks - https://on.ft.com/3JJWzdh via @FT 4 May 2024 Macro-linked debt could be tied to GDP and reforms and may help attract investors back to emerging markets # africa debt economics g20 common framework

"Since 2022, the United States and other major developed economies, particularly in Europe, have been raising interest rates. In contrast, China's multiple rate cuts have kept financing costs low, which has prompted many issuers to raise RMB funds by issuing panda bonds in the Chinese Mainland," said Yang Junhao, CEO of China Chengxin Green Finance International and Vice President of China Chengxin (Asia Pacific) Credit Ratings Company Limited, in a recent interview with 21st Century Business Herald. The recent launch of the ultra-long-term special government bonds has been well received by the market. Yang shared with our reporter, "Issuing these bonds optimizes the debt structure between central and local governments, allowing some national bond funds to be used by local authorities. This will enhance the fiscal capacity of local governments, especially in regions facing high debt pressure, substantial debt risks, and slow economic development." ? Yang further noted, "The issuance of ultra-long government bonds and policy bank bonds is expected to accelerate. We anticipate that the issuance volume of these bonds will peak in the third quarter." Read:https://lnkd.in/gKUSigrT 中诚信国际信用评级有限责任公司

Fidelity’s Greer Is Buying ‘Sweet Spot’ Short-Dated Turkish Debt By Tugce Ozsoy (Bloomberg) -- Fidelity International is adding to its holdings of Turkish government bonds, joining the growing number of foreign investors wagering policymakers will succeed in slowing inflation. Paul Greer, a portfolio manager at the $584 billion investment firm, has recently bought lira-denominated bonds with two-year to three-year maturities. Based on ex-ante real yields, that segment of the bond curve “seems to provide the risk-adjusted sweet spot for investors,” Greer said in emailed comments.? Greer is only the latest to step up exposure to Turkey, which, according to Treasury and Finance Minister Mehmet Simsek, is “overwhelmed with inflows.” Authorities’ pivot back to orthodox monetary policies is expected to slow inflation, currently at almost 70%, inducing foreign investors to purchase lira bonds at a record pace. Interest rates at 50% — up from 8.5% a year ago — are also boosting confidence in the lira, which Bank of America Corp. considers the best bet among regional emerging market currencies.????

The #China analyst I find most insightful, Michael Pettis, on the underlying structural issue of the Chinese economy. “The surge in Chinese #debt is not itself the problem but rather a symptom of the problem. The real problem is the cumulative but unrecognised losses associated with the misallocation of #investment over the past decade into excess property, infrastructure and, increasingly, manufacturing.” This might be one clue on why #valuations have been a poor indicator for assessing the attractiveness of the Chinese equity market. Financial Times article: China’s debt isn’t the problem https://on.ft.com/41tybo0

?? The recent news about the foreign investors stuck in Evergrande's complicated Chinese debt situation is concerning. As reported by Financial Times, the ripple effects of this crisis are being felt globally. It's a stark reminder of the interconnectedness of the global economy and the potential impact on diverse stakeholders. Let's discuss the implications and potential solutions. #EvergrandeCrisis #GlobalEconomy #FinancialMarkets https://ift.tt/Pn8Mj4k

Why is this closely watched by investors, policymakers, and economists around the world? China may raise 6 trillion yuan ($850 billion) in new #debt over 3 years, according to an exclusive report by Caixin Global, quoting multiple sources. Part of the funds will be used to ease the local government’s debt burden. The report follows the Chinese finance minister’s pledge to sharply boost debt at a press conference on Saturday. This is another significant move by the Chinese authority following a slate of stimulus measures announced earlier. The #Chineseeconomy has been facing challenges, including a #propertymarket slowdown and trade tensions. The new move has been speculated for a while as a way to boost growth.??As a major driver of global economic activity, any significant policy change, especially one aimed at stimulating growth, can have ripple effects on international markets.? The move has attracted lots of attention also because the issuance of large amounts of #treasurybonds impacts the bond market and stock market. The effectiveness and long-term sustainability of the stimulus remain a concern, so is debt sustainability as excessive debt can pose risks to economic stability. Still, we keep watching with cautious optimism. #stimulus #growth #economy #China #bonds

Negotiations to resolve SL's $13 Bn debt default could lead to the creation of a new bond type that connects payments to economic growth and governance reforms. SL and its creditors have tentatively agreed to replace the debt it stopped paying in 2022 with "Macro-Linked Bonds", which would reflect the country's recovery. Including GDP-linked payouts in bonds seen as a significant move towards developing debt structures that attract international investors to emerging markets finance needs. Creditors have proposed a new $9 Bn bond, in exchange for accepting a 1/3 reduction in original debt. Payments on this bond would vary in 2028 based on SL's average US$ GDP. SL has suggested other methods for setting GDP-linked payments: a separate Governance-Linked Bond proposal from creditors, which would reduce coupon payments if the country improves tax revenue collection and enacts anti-corruption reforms. Unlike Equity-Like Warrants of Ukraine & Uruguay, which is hard to trade, SL's proposed bond would adjust an existing bond starting in 2028, breaking new ground in this area. However, skepticism remains among some investors due to past difficulties linking payouts to volatile economic factors like GDP. Argentina's experience with warrants issued after its 2001 default, led to legal disputes over GDP data. El Salvador's recent bond sale with a warrant attached raised concerns as well, particularly if the country fails to secure an IMF bailout in the next 18 months. Macro-Linked Bonds are seen as a way to attract investors who have shied away from riskier sovereign debt markets in favor of higher interest rates elsewhere. These bonds are believed to appeal to both creditors and debtors. In the worst-case scenario proposed for SL's Macro-Linked Bond, bondholders might face further losses if GDP averages $78 Bn per year over 03 years. If GDP reaches around $90 billion, bondholders would see increased payback. The potential reduction in coupon payments for reforms isn't seen as a significant financial incentive. It could serve as a barrier if a future government deviate from the agreed-upon path. SL's debt restructuring faces challenges, including potential political turmoil from upcoming elections, before any new bonds can help boost demand for the debt of poorer but fast-growing economies. There may be opposition pressure to review restructuring deals if they come to power, potentially causing friction with bondholders. https://lnkd.in/gDkGv3PP