The CrossBorder Capital Blog

Markets Catch-Up With The Central Bankers But Economies Are Already Slipping   The collapse in Central Bank liquidity is adding a fierce headwind for investors in 2022. This will be a year for capital preservation. However, not just Global Liquidity matters. Investors’ risk positioning is also affected by economic developments, among other things. We argue here that latest daily data points to weakening economies and may itself warrant lower equity exposure. The exception here is China, where already low investor holdings of stocks is starting to confront a strong pick-up in positive economic surprises. China could be the maverick play in 2022?       See our latest published research, Global View - Markets Catch-Up With The Central Bankers But Economies Are Already Slipping – January 2022    

  Emerging Market Liquidity: China's Continuing Squeeze ·                 Equities are not always the first asset class to be affected by liquidity changes, but they are the most geared to liquidity. This is even more true for EM equities ·                 There is no evidence of a renewed and strong Chinese credit impulse in the data we track   See our latest published research, Emerging Markets Latest GLI™ – January 2022  

  Global Liquidity Latest: Shanghai'd (Temporarily) By Beijing?   ·                 Since the GFC, new liquidity provisions have been largely controlled by changes in the size of Central Bank balance sheets. These now have a staggering 3-3½ times the impact on Global Liquidity they previously had.   ·                 China is the elephant-in-the-room, since the People's Bank (PBoC) continues to squeeze liquidity lower, cutting liquidity by a huge 20% at an annualised rate         See our latest published research, Global Liquidity Latest – January 2022