Asia Private Credit Rising potential in growth economies in Asia

Please find below our latest thoughts on China:

• China’s markets have paused for breath after the hectic rally in recent months. The largest China stock by market capitalisation, Tencent, is up by more than 100% since the low point at the end of October last year.¹
• Recent days have seen some profit taking in offshore China in particular. As a result, there has been some catch-up in the relative performance of China A-shares. Year to date, the MSCI China A Onshore Index is now ahead of MSCI China.²
• Part of the reason for the market lull is because there has been a relative news vacuum. This won’t last for long, however.

• The next results season gets underway in earnest in a few weeks. The results themselves are likely to be very weak, reflecting the early stages of the reopening when Covid was spreading rapidly and many people isolated at home. More interesting will be to hear what companies are saying about early signs of business recovery. 
• Also coming up on 5 March is the so-called “Two Sessions”, the joint annual meetings of China’s national legislature and the top political advisory body.
• The event carries particular significance this year for two main reasons. The first is that all new political appointments will be confirmed, a process which started almost six months ago at the Party Congress. With the heads of key departments in place, policy implementation should be accelerated.
• The second area of significance relates to the 2023 GDP growth target – expected to be at least 5% – and more details on policy support to achieve the target. Having undershot last year, officials will no doubt be incentivised to over-achieve their KPIs this time around. 
• The rumour mills are in full swing with expectations of consumption coupons for smaller cities, more fiscal stimulus on infrastructure projects and potentially higher leverage in state-owned enterprises (SOEs) to provide additional domestic demand. 
• One notable economic data point recently was the robust monthly new credit data for January, which came in significantly ahead of expectations and was the second-highest level on record. Banks have clearly been following the regulator’s instructions to step up lending.  
• We continue to expect a significant economic recovery in coming months, with the services sector leading the way.

• The next results season gets underway in earnest in a few weeks. The results themselves are likely to be very weak, reflecting the early stages of the reopening when Covid was spreading rapidly and many people isolated at home. More interesting will be to hear what companies are saying about early signs of business recovery. 
• Also coming up on 5 March is the so-called “Two Sessions”, the joint annual meetings of China’s national legislature and the top political advisory body.
• The event carries particular significance this year for two main reasons. The first is that all new political appointments will be confirmed, a process which started almost six months ago at the Party Congress. With the heads of key departments in place, policy implementation should be accelerated.
• The second area of significance relates to the 2023 GDP growth target – expected to be at least 5% – and more details on policy support to achieve the target. Having undershot last year, officials will no doubt be incentivised to over-achieve their KPIs this time around. 
• The rumour mills are in full swing with expectations of consumption coupons for smaller cities, more fiscal stimulus on infrastructure projects and potentially higher leverage in state-owned enterprises (SOEs) to provide additional domestic demand. 
• One notable economic data point recently was the robust monthly new credit data for January, which came in significantly ahead of expectations and was the second-highest level on record. Banks have clearly been following the regulator’s instructions to step up lending.  
• We continue to expect a significant economic recovery in coming months, with the services sector leading the way.

• The next results season gets underway in earnest in a few weeks. The results themselves are likely to be very weak, reflecting the early stages of the reopening when Covid was spreading rapidly and many people isolated at home. More interesting will be to hear what companies are saying about early signs of business recovery. 
• Also coming up on 5 March is the so-called “Two Sessions”, the joint annual meetings of China’s national legislature and the top political advisory body.
• The event carries particular significance this year for two main reasons. The first is that all new political appointments will be confirmed, a process which started almost six months ago at the Party Congress. With the heads of key departments in place, policy implementation should be accelerated.
• The second area of significance relates to the 2023 GDP growth target – expected to be at least 5% – and more details on policy support to achieve the target. Having undershot last year, officials will no doubt be incentivised to over-achieve their KPIs this time around. 
• The rumour mills are in full swing with expectations of consumption coupons for smaller cities, more fiscal stimulus on infrastructure projects and potentially higher leverage in state-owned enterprises (SOEs) to provide additional domestic demand. 
• One notable economic data point recently was the robust monthly new credit data for January, which came in significantly ahead of expectations and was the second-highest level on record. Banks have clearly been following the regulator’s instructions to step up lending.  
• We continue to expect a significant economic recovery in coming months, with the services sector leading the way.

• The next results season gets underway in earnest in a few weeks. The results themselves are likely to be very weak, reflecting the early stages of the reopening when Covid was spreading rapidly and many people isolated at home. More interesting will be to hear what companies are saying about early signs of business recovery. 
• Also coming up on 5 March is the so-called “Two Sessions”, the joint annual meetings of China’s national legislature and the top political advisory body.
• The event carries particular significance this year for two main reasons. The first is that all new political appointments will be confirmed, a process which started almost six months ago at the Party Congress. With the heads of key departments in place, policy implementation should be accelerated.
• The second area of significance relates to the 2023 GDP growth target – expected to be at least 5% – and more details on policy support to achieve the target. Having undershot last year, officials will no doubt be incentivised to over-achieve their KPIs this time around. 
• The rumour mills are in full swing with expectations of consumption coupons for smaller cities, more fiscal stimulus on infrastructure projects and potentially higher leverage in state-owned enterprises (SOEs) to provide additional domestic demand. 
• One notable economic data point recently was the robust monthly new credit data for January, which came in significantly ahead of expectations and was the second-highest level on record. Banks have clearly been following the regulator’s instructions to step up lending.  
• We continue to expect a significant economic recovery in coming months, with the services sector leading the way.

• The next results season gets underway in earnest in a few weeks. The results themselves are likely to be very weak, reflecting the early stages of the reopening when Covid was spreading rapidly and many people isolated at home. More interesting will be to hear what companies are saying about early signs of business recovery. 
• Also coming up on 5 March is the so-called “Two Sessions”, the joint annual meetings of China’s national legislature and the top political advisory body.
• The event carries particular significance this year for two main reasons. The first is that all new political appointments will be confirmed, a process which started almost six months ago at the Party Congress. With the heads of key departments in place, policy implementation should be accelerated.
• The second area of significance relates to the 2023 GDP growth target – expected to be at least 5% – and more details on policy support to achieve the target. Having undershot last year, officials will no doubt be incentivised to over-achieve their KPIs this time around. 
• The rumour mills are in full swing with expectations of consumption coupons for smaller cities, more fiscal stimulus on infrastructure projects and potentially higher leverage in state-owned enterprises (SOEs) to provide additional domestic demand. 
• One notable economic data point recently was the robust monthly new credit data for January, which came in significantly ahead of expectations and was the second-highest level on record. Banks have clearly been following the regulator’s instructions to step up lending.  
• We continue to expect a significant economic recovery in coming months, with the services sector leading the way.

• The next results season gets underway in earnest in a few weeks. The results themselves are likely to be very weak, reflecting the early stages of the reopening when Covid was spreading rapidly and many people isolated at home. More interesting will be to hear what companies are saying about early signs of business recovery. 
• Also coming up on 5 March is the so-called “Two Sessions”, the joint annual meetings of China’s national legislature and the top political advisory body.
• The event carries particular significance this year for two main reasons. The first is that all new political appointments will be confirmed, a process which started almost six months ago at the Party Congress. With the heads of key departments in place, policy implementation should be accelerated.
• The second area of significance relates to the 2023 GDP growth target – expected to be at least 5% – and more details on policy support to achieve the target. Having undershot last year, officials will no doubt be incentivised to over-achieve their KPIs this time around. 
• The rumour mills are in full swing with expectations of consumption coupons for smaller cities, more fiscal stimulus on infrastructure projects and potentially higher leverage in state-owned enterprises (SOEs) to provide additional domestic demand. 
• One notable economic data point recently was the robust monthly new credit data for January, which came in significantly ahead of expectations and was the second-highest level on record. Banks have clearly been following the regulator’s instructions to step up lending.  
• We continue to expect a significant economic recovery in coming months, with the services sector leading the way.

• The next results season gets underway in earnest in a few weeks. The results themselves are likely to be very weak, reflecting the early stages of the reopening when Covid was spreading rapidly and many people isolated at home. More interesting will be to hear what companies are saying about early signs of business recovery. 
• Also coming up on 5 March is the so-called “Two Sessions”, the joint annual meetings of China’s national legislature and the top political advisory body.
• The event carries particular significance this year for two main reasons. The first is that all new political appointments will be confirmed, a process which started almost six months ago at the Party Congress. With the heads of key departments in place, policy implementation should be accelerated.
• The second area of significance relates to the 2023 GDP growth target – expected to be at least 5% – and more details on policy support to achieve the target. Having undershot last year, officials will no doubt be incentivised to over-achieve their KPIs this time around. 
• The rumour mills are in full swing with expectations of consumption coupons for smaller cities, more fiscal stimulus on infrastructure projects and potentially higher leverage in state-owned enterprises (SOEs) to provide additional domestic demand. 
• One notable economic data point recently was the robust monthly new credit data for January, which came in significantly ahead of expectations and was the second-highest level on record. Banks have clearly been following the regulator’s instructions to step up lending.  
• We continue to expect a significant economic recovery in coming months, with the services sector leading the way.