China to ‘focus on currency stability’ in face of inflows of up to US$3 trillion

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Yesterday’s announcement that China will join the reserve currency basket of the International Monetary Fund is only one aspect of a process that could channel up to US$3 trillion ($4.2 trillion) into the country, global asset manager AllianceBernstein (AB) said yesterday. While the development is beneficial for China in the long term, the management of

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Will the global investment landscape realign in 2016?

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As we approach the end of the year, our research is leading us to the view that we’re also nearing the end of an investment era, and the beginning of a new one. We expect this to be a global trend which will be positive for China, but with potentially negative implications for risk assets.

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China’s policies and fundamentals converge

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Given all the negative commentary about China at the moment, it’s difficult for many investors to get a balanced perspective on the risks and opportunities there. Our bottom-up research, however, is uncovering early signs of stabilizing trends which point to a better year for the country in 2016. Two are particularly interesting, in our view:

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China: What’s really behind the currency move?

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China’s decision earlier this month to change the way in which the central parity or “fix” rate of the renminbi (RMB) is determined has been widely characterised as a devaluation designed to shore up the country’s export trade. We question this assessment, for a number of reasons. In our view, the move is much better

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Fundamentals and policy keep RMB riding at anchor

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Even before the correction in China’s A-Shares market, a number of investors expressed to us scepticism about our positive outlook for the renminbi (RMB). Some even saw devaluation as a possibility. For a variety of reasons, we continue to see the currency appreciating. In the aftermath of China’s A-Shares correction, many investors may be more

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Despite uncertainty and volatility, China’s reforms could trigger six world-shaking changes, says AB

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One of the biggest risks facing investors concerned about weak growth and market volatility in China is that they could be underestimating the country’s upside potential, research by global asset manager AllianceBernstein (AB) suggests. “Global investors have been understandably transfixed by the recent gyrations in China’s equity markets,” said the authors of the firm’s latest

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The case for a robust RMB strengthens

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We’ve been saying for some time that China’s reforms will happen more quickly than most people expect, and that’s proving to be the case on a number of fronts, including internationalisation of the renminbi. News that the People’s Bank of China is aiming for full convertibility this year provides yet more support for our view

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China on track with reforms, says AllianceBernstein

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China is likely to overcome its present difficulties and emerge as a major stabilising force in the global world economy and global financial markets, global asset manager AllianceBernstein said yesterday. The key to this outcome is that the Chinese government remains committed to its far-reaching economic and financial reforms, said Hayden Briscoe, Director—Asia Pacific Fixed

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