China, Emerging Markets

Ryan Soh 苏祥发

Thematic (Sector/Industry)

<p>The Chinese are deleveraging on their own terms and it is believable that this will continue, but not at any cost. Instead of costs, there may be benefits, such as reform of state-owned enterprises, and the further development of the financial derivatives market, in the form of debt-to-equity swaps. This is good for Chinese bank stocks and for Chinese debt. </p>

The Chinese are deleveraging on their own terms and it is believable that this will continue, but not at any cost. Instead of costs, there may be benefits, such as reform of state-owned enterprises, and the further development of the financial derivatives market, in the form of debt-to-equity swaps. This is good for Chinese bank stocks and for Chinese debt. 

Deleveraging: An Interpretation