Indian equity markets have proven to be quite resilient – despite the second Covid wave from late March to June, high equity valuations and above-average inflation. Peeyush Mittal of Asia expert Matthews Asia points this out in his latest market commentary („Matthews Asia Insights: What’s on the horizon for India’s markets?”) and explains which three reasons are mainly responsible for the equity recovery on the subcontinent in his view.
The plight of China’s largest property developer, China Evergrande Group, which appears to be struggling to service interest payments to two creditor banks, has not only caused turmoil in the bond markets. “Evergrande’s plight raises critical issues about investing anywhere in emerging markets, not just China,” says Teresa Kong, responsible for all fixed income strategies at Asia specialist Matthews Asia. The Evergrande saga therefore underlines the importance of conducting thorough due diligence on three aspects of good corporate governance when making bond investments, namely accounting, legal and regulatory requirements, she explains in her latest commentary.
The Chinese government’s intervention in the market for private education providers, as well as its intervention in the planned listings of ride-hailing giant Didi and Ant Group on US stock exchanges, have worried investors worldwide. Many now fear further regulation that could negatively impact listings of Chinese companies. Andy Rothman (pictured), investment strategist at Asia specialist Matthews Asia, and his colleague and Chief Investment Officer Robert Horrocks believe these concerns are only partially justified, as they explain in the following interview.
One of the few positive effects of the coronavirus crisis and lockdown during recent months was that I had more time to take up new things – like creating an editorial podcast (and you wouldn’t believe how much work goes into such a project – even if, like me, you worked in radio a long time ago)! My podcast, which will be published once a month, is mainly about the success and efforts of foreign financial service companies on the German market. The first episode of “GFC (not the ‘Global Financial Crisis’) Podcast” is now finished and can be listened to on Deezer and Spotify as well as on this website (it’s mainly in German, though).