Daily BriefsMacro

Macro: Big Changes to Capital Gains Taxes on Korean Equities for Local Retail Investors Starting 2023 and more

In today’s briefing:

  • Big Changes to Capital Gains Taxes on Korean Equities for Local Retail Investors Starting 2023
  • Revisiting the US Dollar View and Its Implications for EM Currencies
  • CX Daily: Shanghai’s Rocky Road to Rebooting
  • CX Daily: Five Things to Know About China’s Overarching Financial Stability Law
  • India Macro Meter – Growth Holding Up; Sequential Momentum Improves

Big Changes to Capital Gains Taxes on Korean Equities for Local Retail Investors Starting 2023

By Douglas Kim

  • There are some big changes to the capital gains taxes for Korean retail investors of domestic stocks in 2023 which could accelerate selling of domestic stocks by the local investors.
  • The change in the way capital gains taxes are calculated starting 2023 for local investors will result in higher taxes overall for about 100k local investors.
  • The overall change in capital gains tax is negative on the Korean stock market and many investors will likely accelerate their selling of domestic stocks in 2H 2022. 

Revisiting the US Dollar View and Its Implications for EM Currencies

By Gautam Jain, PhD, CFA

  • As the US dollar approaches its highest level in a decade in line with my expectation, I reiterate my view of the dollar remaining strong in the near term.
  • The dollar spike coincides with the rise in US rates volatility, which makes sense as the market is trapped between Fed tightening and risk aversion arising from rising recession probability.
  • As the year progresses, I expect the dollar to weaken and the environment to turn supportive of EM currencies. Until then, I recommend relative-value trades and hedging with the euro.

CX Daily: Shanghai’s Rocky Road to Rebooting

By Caixin Global

  • Rebooting / Cover Story: Shanghai’s rocky road to rebooting.

  • Covid-19 / Beijing starts mass Covid testing as it imposes lockdowns.

  • Corruption / Graft probes ensnare college buddies who were top bankers.


CX Daily: Five Things to Know About China’s Overarching Financial Stability Law

By Caixin Global

  • Five Things to Know About China’s Overarching Financial Stability Law

  • Chinese citizens submitted 20% more requests for government information in 2021

  • China’s Covid outbreaks take bite out of local economic growth


India Macro Meter – Growth Holding Up; Sequential Momentum Improves

By Nirmal Bang

  • Early data for March’22 indicate that 67.74% indicators were in the positive territory on YoY basis, up from 59.4% in Feb’22.
  • Around 80.56% indicators (where 2-year CAGR can be calculated) were above the pre-pandemic level in March’22, up from 61.1% in Feb’22.
  • On a sequential basis, growth witnessed improvement, with 78.13% indicators in the positive territory in March’22, up from 53.13% in Feb’22.
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