Asia-Pacific | Equities

China – Economic Transformation Brings Opportunities

_{Posted on Jan 6, 2020}

China has 3 major policy directions aimed at stimulating the domestic economy amid a global slowdown, per China Center for International Economic Exchange in Beijing – 1) Innovation: The government is encouraging innovation through various means, including tax rebates for new businesses. Government revenue is 65% from turnover taxes, comprising value-added taxes, consumption taxes, operating taxes and custom taxes etc., 25% from corporate taxes and 10% from others; 2) Poverty reduction: 20-30m live in poverty in China, which the government targets to remove in 2020E; and 3) Go green (environment protection): Waste management will be pushed, particularly industrial waste.

China could have five areas of rapid growth in 2020E. Although Citi analysts expect China’s GDP to decelerate to 5.8% in 2020E, the country could rapidly grow on five fronts – new-generation information technology, biotech, green & low-carbon, high-end equipment manufacturing and new materials, as well as digital creativity. China’s GDP per capita in 2018, taking purchasing power parity (PPP) into account, was similar to Japan’s in 1990, the UK’s in 1993 and South Korea’s in 2000, when the best performers in these markets were mostly service-related and/or high- tech-oriented companies.

Risk Factors: Potential risks and uncertainty for the macro economy could stem from the China-US trade tensions, fixed asset investment downswing, deceleration in ordinary consumption, PPI dropping but CPI rising, uncompetitive manufacturing industries, and a global slowdown. The government could counter these concerns by reforms at the manufacturing level, production entity as well as financial and capital markets.

_{By Citi Global Wealth Investments | Mar 18, 2024}

Weekly FX Focus - DXY: Attention On The BoJ, Fed And SNB This Week

Markets see a busy week with 10 central bank meetings this week. Our Head of FX Strategy brings our focus to 3 central bank meetings that markets highly anticipate.

_{By Citi Global Wealth Investments | Mar 14, 2024}

Weekly FX Focus - JPY: Spotlight Shifts to Yen Ahead of BoJ Meeting

After decades of poor economic performance, Japan now sees wage growth, inflation, and avoided a technical recession. Are we finally seeing the light at the end of the tunnel for Japan? This week, our Global Head of FX Strategy analyzes the situation for the Yen and compare the differences in central bank policy between Japan and the US.

FX Economy Asia-Pacific

_{By Citi Global Wealth Investments | Mar 7, 2024}

Weekly FX Focus - NZDCHF: NZ Rates Higher For Longer, SNB Poised to Cut

The Reserve Bank of New Zealand made an unexpected decision to keep rates unchanged last week. Meanwhile, the Swiss National Bank is expected to cut rates. This week, we examine the circumstances of both economies and discover how NZD could benefit.

FX Economy Asia-Pacific

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the provisions of the Deposit Insurance and Policy Owners’ Protection Schemes Act of Singapore and are not eligible for deposit insurance coverage under the Deposit Insurance Scheme.

This communication is for general information only and should not be relied upon as financial advice. The information herein has no regard to the specific objectives, financial situation and particular needs of any specific person and is not intended to be an exhaustive discussion of the strategies or concepts mentioned herein or tax or legal advice. Any person interested in the strategies or concepts mentioned herein should consult their independent tax, legal, financial or other advisors,
as appropriate. This communication does not constitute the distribution of any information or the making of any offer or solicitation by anyone in any jurisdiction in which such distribution or offer is not authorized or to any person to whom
it is unlawful to distribute such information or make any offer or solicitation.

Before making any investment, each investor must obtain the investment offering materials, which include a description of the risks, fees and expenses and the performance history, if any, which may be considered in connection with making
an investment decision. Interested investors should seek the advice of their financial adviser about the issues discussed herein as appropriate. Should investors choose not to seek such advice, they should carefully consider the risks associated
with the investment and make a determination based upon the investor’s own particular circumstances, that the investment is consistent with the investor’s investment objectives and assess whether the investment product is suitable for
themselves. Although information in this document has been obtained from sources believed to be reliable, CSL does not guarantee its accuracy or completeness and accept no liability for any direct or consequential losses arising from Its use.

CSL does not provide discretionary portfolio management services.

UAE: This document is distributed in UAE by Citibank, N.A. UAE. Citibank N.A. UAE is licensed by UAE Securities and Commodities Authority (“SCA”) to undertake the financial activity as Promoter under license number 602003.

Citibank N.A. UAE is registered with Central Bank of UAE under license numbers BSD/504/83 for Al Wasl Branch Dubai, 13/184/2019 for Mall of the Emirates Branch Dubai, BSD/2819/9 for Sharjah Branch, and BSD/692/83 for Abu Dhabi Branch.

This is not an official statement of Citigroup Inc. and may not reflect all of your investments with or made through Citibank. For an accurate record of your accounts and transactions, please consult your official statement. Before making any investment, each investor must obtain the investment offering materials, which include a description of the risks, fees and expenses and the performance history, if any, which may be considered in connection with making an investment decision. Each investor should carefully consider the risks associated with the investment and make a determination based upon the investor’s own particular circumstances, that the investment is consistent with the investor’s investment objectives.
At any time, Citigroup companies may compensate affiliates and their representatives for providing products and services to clients.

United Kingdom: This document is distributed in the U.K. by Citibank UK Limited and in Jersey by Citibank N.A., Jersey Branch.

Citibank UK Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our firm’s Financial Services Register number is 805574. Citibank UK Limited
is a company limited by shares registered in England and Wales with registered address at Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB, Companies House Registration No. 11283101.

Citibank N.A., Jersey Branch is regulated by the Jersey Financial Services Commission. Citi International Personal Bank is registered in Jersey as a business name of Citibank N.A. The address of Citibank N.A., Jersey Branch is P.O. Box 104, 38 Esplanade, St Helier, Jersey JE4 8QB. Citibank N.A. is incorporated with limited liability in the USA. Head office: 399 Park Avenue, New York, NY 10043, USA.

DISCLAIMER [+]

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