Key Takeaways:
- 💸 A sliding yuan and outflows of cash from China into Hong Kong signal domestic investors looking for better-yielding assets
- 📉 Sentiment on China has soured recently due to disappointing macro data and lack of stimulus
- 📈 Shanghai stock index rose but fell post-May, with foreign investors turning sellers and domestic investors pumping money into Hong Kong
- 🤔 Investors are pausing to reflect on PBOC’s easing measures and upcoming plenum of China’s Communist Party
- 💰 Mainland cash flooding into Hong Kong, boosting yuan deposits to record levels
- 💵 CNH has fallen against the Hong Kong dollar, driven by southbound flows and dividend payments in Hong Kong
- 🇺🇸 Expectation of U.S. rate cuts is drawing money into Hong Kong due to currency peg and impact on economy
- 👥 Aims to support political leaders in taking bold action for climate change
- 🙋♀️ Public opinion shows strong desire for governments to take stronger climate action
- 🌱 Cleaner technologies are cheaper, better performing, and a safer investment than fossil fuels
- 📊 Coalition to provide data to justify policy changes for transition to low-carbon economy
- 🌐 Focus on 20 largest economies to drive significant emission reductions and policy changes
- 🏆 Michael King allowed five runs on six hits in the second inning
- 🚀 Willy Adames broke up the no-hit bid with a single
- ⚾ Padres faced a 6-2 loss after falling behind early in the game
- 🌟 Padres have had two comebacks from being five runs down
- 🎯 San Diego Padres notes: Michael King’s performance, Yu Darvish rehab update, and All-Star talk
- 💡 Mission 2025 coalition urges governments to increase climate ambition
- 🌍 Deadline for countries to submit updated Nationally Determined Contributions is February 2025
- 🚀 Cleaner technologies are cheaper, better-performing, and faster to construct
- 💼 More clarity from governments needed to boost confidence in investing in low-carbon economy
Domestic Investors Eye Better-Yielding Assets in Hong Kong
As the yuan slides and cash flows out of China into Hong Kong, domestic investors are seeking better-yielding assets abroad. This trend is reflected in the boosting of yuan deposits to record levels in Hong Kong, driven by mainland cash flooding into the region. Additionally, the CNH has fallen against the Hong Kong dollar, influenced by southbound flows and dividend payments in Hong Kong.
Mixed Sentiment on China and Investments in Hong Kong
Investor sentiment on China has soured due to disappointing macro data and a lack of stimulus measures. While the Shanghai stock index initially rose but fell post-May, foreign investors have turned sellers, and domestic investors are pumping money into Hong Kong. The expectation of U.S. rate cuts is also attracting investments into Hong Kong, leveraging the currency peg and its economic impact.
Mission 2025 Coalition Urges Climate Ambition and Action
The Mission 2025 coalition, comprising big companies like Unilever and IKEA, is pushing for increased climate ambition by supporting political leaders in taking bold action against climate change. With a focus on the 20 largest economies to drive emission reductions and policy changes, the coalition aims to provide data to justify policy changes for a transition to a low-carbon economy. Public opinion shows a strong desire for governments to take stronger climate action, as cleaner technologies are proven to be cheaper, better performing, and a safer investment than fossil fuels. However, more clarity from governments is needed to boost confidence in investing in the low-carbon economy.