Evergrande & Sunac Restructure With Country Garden On Deck

Week in Review

• China’s better-than-expected economic release this week failed to lift markets as most Asian equity markets closed lower on the week.
• The Biden Administration added to the types of semiconductors that US companies and those using US-developed technology are unable to export to China, though most global chipmakers reported that they expected a small impact from the expanded list and continue to see target China for future growth.
• Buybacks continued to increase this week with 10 state-owned enterprises (SOEs) announcing new buybacks or increases in their buyback programs while internet giant Tencent has bought back nearly $4 billion worth of its own stock so far this year.
• Electric vehicle giant BYD guided for its Q3 net income to nearly double.

Key News

Asian equities ended an off week lower as 10-Year US treasury yields temporarily rose above 5% during Asia trading hours following Powell’s press conference yesterday.

Markets are not climbing the wall of worry that seems to be getting higher as investors stay in risk-off mode. Shanghai and Shenzhen closed farther below my “lines in the sand” of 3,100 and 1,900, respectively. The markets closed at 2,983 and 1,810. This week’s price action puts Shenzhen close to the Ukraine invasion low in March of 2022.