Cross-Asset Liquidity Strategist, CrossBorder Capital

Michael J. Howell

Cross-Asset Liquidity Strategist

Implementing Research Using Alt Data & AI

CrossBorder Capital

CrossBorder Capital is a London-based independent investment advisory firm. Founded in 1996, it exploits a gap in the investment arena by focusing on Central bank liquidity. 

It specialises in the monitoring and analysis of global liquidity flows - an important determinant of asset prices, from currencies through to bonds, equities and real estate.

CrossBorder Capital implements its investment strategy and currently manages over US$ 350m.


Cross Asset Strategy

<ul>
<li>Combination of low US inventories and strong Chinese liquidity
</li>
<li>
Shadow Banks the new policy-lever?</li>
<li>
People’s Bank balance sheet flat-lining a distraction</li>
<li>Stocks at 0.18x are lowly priced versus liquidity measures</li>
</ul>


Combination of low US inventories and strong Chinese liquidity


Shadow Banks the new policy-lever?

People’s Bank balance sheet flat-lining a distraction
Stocks at 0.18x are lowly priced versus liquidity measures


<ul>
<li>PBoC is easing through the ‘backdoor’ while keeping its balance sheet flat</li>
<li>Directed lending programs are fueling a step-up in credit growth</li>
<li>20% annualized pick-up in lending fastest since early-2016</li>
<li>Chinese equity exposure in portfolios relatively low. Risk assets look attractive</li>
<li>EM should also benefit from Chinese easing</li>
</ul>


PBoC is easing through the ‘backdoor’ while keeping its balance sheet flat
Directed lending programs are fueling a step-up in credit growth
20% annualized pick-up in lending fastest since early-2016
Chinese equity exposure in portfolios relatively low. Risk assets look attractive
EM should also benefit from Chinese easing


Chinese Easing Drives Next Phase of Liquidity-Driven Boom. Could EM Soar?

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

MSCI Emerging Markets Index / Technical Analysis

With RS uptrends intact we continue to recommend Sector overweights to MSCI EM Technology, Consumer Discretionary, Health Care, and Communications. Materials remains an attractive cyclical value Sector as both price and RS show signs of bottoming -- add exposure. In this report we offer a number of attractive set ups with the EM universe across sectors.

With RS uptrends intact we continue to recommend Sector overweights to MSCI EM Technology, Consumer Discretionary, Health Care, and Communications. Materials remains an attractive cyclical value Sector as both price and RS show signs of bottoming -- add exposure. In this report we offer a number of attractive set ups with the EM universe across sectors.  

Global Equity Chart Book: Stick With EM Over EAFE

China (MSCI China, Shanghai Comp., Shenzhen A Share) continues to offer many attractive setups and is a major focus in today’s EM Strategy report. Additionally, Taiwan (TAIEX) continues to be worthy of an overweight within the EM universe with the RS uptrend intact. We highlight several attractive set ups.

China (MSCI China, Shanghai Comp., Shenzhen A Share) continues to offer many attractive setups and is a major focus in today’s EM Strategy report. Additionally, Taiwan (TAIEX) continues to be worthy of an overweight within the EM universe with the RS uptrend intact. We highlight several attractive set ups.

EM Strategy and Chartbook: Remain Overweight EM Vs. EAFE

China and US Equity Analyst

Roger Xie

Chinese fund managers have added more tech and pharma stocks than any other sectors in their portfolios in 1Q this year, according to the fund industry disclosure. Their holdings on tech-heavy ChiNext stock (a NASDAQ-style stock exchange in Shenzhen) have soared to above 20%, a four-year high positions. This is in stark contrast that other large-cap stocks are underweighted and underperformed. We believe the positions dispersion will last longer than expected, tech and consumer-oriented stocks will likely outperform in coming quarters.

Chinese fund managers have added more tech and pharma stocks than any other sectors in their portfolios in 1Q this year, according to the fund industry disclosure. Their holdings on tech-heavy ChiNext stock (a NASDAQ-style stock exchange in Shenzhen) have soared to above 20%, a four-year high positions. This is in stark contrast that other large-cap stocks are underweighted and underperformed. We believe the positions dispersion will last longer than expected, tech and consumer-oriented stocks will likely outperform in coming quarters.

China A-Share Strategy: What Are Mutual Funds Buying in 1Q? Tech and Pharma

China

The Shanghai Stock Exchange Composite Index is a capitalization-weighted index. The index tracks the daily price performance of all A-shares and B-shares listed on the Shanghai Stock Exchange. The index was developed on December 19, 1990 with a base value of 100. 

Shanghai Stock Exchange Composite Index (SHCOMP INDEX)

Shanghai Stock Exchange Composite Index (SHCOMP INDEX)

Could China Boom Again In 2021?

China's economy is set to accelerate into 2021 fueled by a rebound in shadow bank lending and spurred by CCP support for enterprise. Against this...

Michael J. Howell

Chinese Easing Drives Next Phase of Liquidity-Driven Boom. Could EM Soar?

PBoC is easing through the ‘backdoor’ while keeping its balance sheet flat Directed lending programs are fueling a step-up in credit growth 20%...

Michael J. Howell

Global Equity Chart Book: Stick With EM Over EAFE

With RS uptrends intact we continue to recommend Sector overweights to MSCI EM Technology, Consumer Discretionary, Health Care, and Communications....

Vermilion Research

EM Strategy and Chartbook: Remain Overweight EM Vs. EAFE

China (MSCI China, Shanghai Comp., Shenzhen A Share) continues to offer many attractive setups and is a major focus in today’s EM Strategy report....

Vermilion Research

Could China Boom Again In 2021?

China's economy is set to accelerate into 2021 fueled by a rebound in shadow bank lending and spurred by CCP support for enterprise. Against this...

Michael J. Howell

Chinese Easing Drives Next Phase of Liquidity-Driven Boom. Could EM Soar?

PBoC is easing through the ‘backdoor’ while keeping its balance sheet flat Directed lending programs are fueling a step-up in credit growth 20%...

Michael J. Howell

Global Equity Chart Book: Stick With EM Over EAFE

With RS uptrends intact we continue to recommend Sector overweights to MSCI EM Technology, Consumer Discretionary, Health Care, and Communications....

Vermilion Research

EM Strategy and Chartbook: Remain Overweight EM Vs. EAFE

China (MSCI China, Shanghai Comp., Shenzhen A Share) continues to offer many attractive setups and is a major focus in today’s EM Strategy report....

Vermilion Research

China A-Share Strategy: What Are Mutual Funds Buying in 1Q? Tech and Pharma

Chinese fund managers have added more tech and pharma stocks than any other sectors in their portfolios in 1Q this year, according to the fund...

Roger Xie