Daily Brief Thematic (Sector/Industry): Affordable Luxury: A Look Into Chinese Luxury (Part I) and more

In today’s briefing:

Affordable Luxury: A Look Into Chinese Luxury (Part I)
China Property Developers In Distress – Weekly News & Announcements Tracker | Oct 27 – Nov 2, 2023
US Banks – New Weekly Balance Sheets: C&I Loan Growth Turns Negative | Cash +15% | All Loans +1%

Affordable Luxury: A Look Into Chinese Luxury (Part I)

Thanks to the rapidly expanding middle class, increasing incomes, and a strong desire for luxury, Chinese consumers are often seen as the embodiment of the luxury industry’s promising future
However, the market has seen competition intensify: Not only are international brands competing against each other, but the rise of domestic brands has brought the competitive landscape to another level
Since this summer, investors have been concerned by a shifting Chinese landscape in the context of the current economic situation

A weekly curated selection of Chinese news articles and company announcements focused on developers in distress
We look for their deals, updates, specific project progress news (‘local signals’), as well as relevant local research commentaries about the market
We do not verify the underlying data or provide any opinion, we only select and summarize the information; See direct links to sources

New weekly balance sheets for US large banks shows C&I loan growth turning negative. De-risking continues with cash balances up 15.1% YoY, the fourth week of double digit growth.
Total loan growth is nearly negative with the most recent week’s release showing further slowing to 1.11% YoY in week to18 October.
With all of this, US large banks are accelerating their more expensive jumbo time deposits, with growth now at 115% YoY and adding USD26bn in the week.

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