Note to Readers from Larry: Our Mid-Month update for November will be released tomorrow evening inside our Community. It will discuss U.S. and China macro strategy, research, and positioning. Hang tight.
Bank of America has turned “tactically constructive” on Chinese equities.
“While our long-term concerns on China remain in place, we turn tactically constructive on signs of credible easing of policies in recent weeks, which should help China equities, especially in the energy, materials, industrials, and consumer discretionary sectors.”
Macro Chart In Focus
Analyst Team Note:
Due to ongoing economic challenges, small business owners' ability to pay their full rent on time in October took a major hit based on a new Alignable poll. In fact, the U.S. rent delinquency rate among small businesses jumped 7% in just one month, marking the largest, most rapid increase in 2022.
In September, rent delinquency was at a six-month low, as optimism for Q4's earning potential was high and some small business owners reported increased sales.
But now, a month later, 37% of small business owners in the U.S. were unable to pay their rent in full and on time in October, compared to just 30% in September…
“China issued sweeping directives to rescue its property sector, adding to a major recalibration of its pandemic response in the strongest signs yet that President Xi Jinping is turning his attention toward shoring up the world’s second-largest economy.
Regulators issued a 16-point plan to financial firms for boosting the real estate market on Friday, with measures that range from addressing developers’ liquidity crisis to loosening down-payment requirements for homebuyers, according to people familiar with the matter. Authorities said separately in a public statement on Monday they’re allowing developers to access more money from home presales, the industry’s biggest source of funds.” - Bloomberg… more here…
Chart That Caught Our Eye
Analyst Team Note:
The biggest crypto fund, Grayscale Bitcoin Trust (GBTC), has declined ~74% this year and brings GBTC to a 42% discount to the value of the Bitcoin it holds…
We want to take a moment to thank Interactive Brokers for being one of our Channel’s trusted Partners and to inform my audience of the special features they have given that our online friends here closely follow Chinese Internet stocks (BABA/Tencent).
Much of Larry’s audience is concerned about the US ADR issue of Chinese Stocks being delisted.
