- Chinese property sector now a zero-sum game and inversely correlates with the overall market. Property easing doesn’t necessarily mean broad market rally.
- Property is highly correlated with China’s macro savings rate. The lower the savings rate, the better the property sector. But leverage will also be higher.
- Hong Kong is cheap, with neutral to positive technical signs. Patience.
- The CNY weakness reflects deteriorating global fundamentals.
- Shadow CNY suggests further USD strength and corresponding CNY weakness.
- A weakening CNY augurs for looming global risks. Stay put.