Huawei/Trade War/Yuan/ FaceRecTech/Food Security

Monthly Geopolitical Comment: Menace of US Tariffs and Sanctions Obscures Threat of Real War

With Inflation Subsiding, Is Turkey Out of the Woods?

Deputy Chief Economist

Sharmila Whelan

Independent and original Asian investment research

Aletheia Capital

Aletheia Capital (HK) Ltd. (previously known as Asianomics) combines the extensive knowledge of its experienced team with technology and regulatory changes to disrupt Global Markets business in Asia. The firm is completely independent with no conflicts of interest either on Investment Banking advisory or Capital Markets execution.

Macroeconomics

<p>The US-China trade talks have collapsed.  Mr Trump is has declared an all out war by targeting Chinese technology companies. In response China is hardening its stance.  It is little wonder Hong Kong is on edge. The Hang Seng has been correcting since early May. Hibor has spiked and the Hong Kong dollar is under pressure. Still we do not expect growth to be too far off 3% this year and maintain our overweight call on Hong Kong equities.</p>

The US-China trade talks have collapsed.  Mr Trump is has declared an all out war by targeting Chinese technology companies. In response China is hardening its stance.  It is little wonder Hong Kong is on edge. The Hang Seng has been correcting since early May. Hibor has spiked and the Hong Kong dollar is under pressure. Still we do not expect growth to be too far off 3% this year and maintain our overweight call on Hong Kong equities.

MSCI AC Asia ex Japan Index (MXASJ INDEX)

Hong Kong - On Edge