Investors need to position for a US-China clash of civilisations

A ‘great decoupling’ is under way between the incumbent superpower and its challenger. Financial markets welcomed last month’s truce in the long-running trade war between Washington and Beijing. But the “phase one” deal should fool no one. By parking core US complaints, including China’s weak intellectual property protection, forced technology transfer and pervasive state subsidies, the ceasefire … https://on.ft.com/3bbT3pp

Beijing finds unlikely anti-Trump weapon in global indices

Inclusion of Chinese shares in major EM index has helped steady inflows. A trade war is raging between the US and China, but somebody forgot to tell foreign portfolio investors. Surging inflows of foreign capital have headed to the Chinese bond and stock markets and helped to stem the depreciation of the renminbi against the US dollar. Donald Trump has accused China o … https://on.ft.com/2PWFIWM

China to establish new high-tech trading platform in Shanghai

The system is intended to ease equity-raising for small tech companies. The Shanghai stock exchange plans to launch a new trading platform to ease equity-raising for small tech companies, President Xi Jinping said on Monday. The new “technology innovation board” will also test out a new, deregulated mechanism for initial public offerings, Mr Xi said. The so-called “re … https://on.ft.com/2PeT0Sk

President Xi breathes new life into Shanghai FTZ as he hopes to replicate reforms across China

China’s President Xi Jinping on Monday breathed new life into Shanghai, announcing plans for an equity market for start-ups and expansion of the free-trade zone, hoping to revive the flagging fortunes of the economic testing ground seen as a rival to Hong Kong. Xi said in a speech during the China International Import Expo that Shanghai free trade zone will be encouraged … http://bit.ly/2PhSSSk

A bear market

Pandas set to make a comeback as foreigners tap renminbi bonds. They can be elusive… The world’s three biggest domestic bond markets all have special categories for foreign issuers: Yankees in the US, Samurais in Japan and Pandas in China. And in China’s case, they have proved to be as rare as the bear they are named after. Issuance has never really gotten off the groun … http://bit.ly/2EXO13Z