HSBC backs Chinese assets: Overweight A-shares and H-shares, with 'long RMB' as one of the top macro strategies of the year.
HSBC's annual macro strategy strongly favors China, recommending an overweight allocation to A-shares and Hong Kong stocks by 2026, along with establishing a long position in the renminbi. The recommendation is to "sell Swiss francs and buy offshore renminbi." Institutions warn of risks associated with crowded AI trading and advise reducing exposure to South Korean equities, shifting instead to assets supported by domestic demand in China, India, and Indonesia as a defensive strategy against market volatility.
China to Open Wider, Spur Spending in 2026
China Inflation Edging Higher Doesn't Mean Reversal of Deflationary Pressures -- Market Talk
China's CPI in December increased by 0.8% year-on-year, compared to the previous value of 0.7%.
More updates to follow.
China Forex Reserves Rise in December 2025
China has made its latest commitment to supporting economic growth in 2026!
FX168 Financial News Agency (Asia-Pacific) reported that China announced it would expand government spending and optimize fund allocation methods by 2026, aiming to strike a balance between stabilizing economic growth and preventing debt risks.
Year-end foreign exchange settlement demand surges! The RMB exchange rate breaks below 7 again after 14 months—what’s the outlook moving forward?
The recent appreciation volatility in the RMB exchange rate is reasonable, primarily driven by three factors: a weaker US dollar, catch-up growth amid shifting expectations, and concerns over the seasonal pattern of concentrated foreign exchange settlements at the end of the year and the beginning of the next.
China's Central Bank To Keep Liquidity Ample In Efforts To Bolster Economy
Express News | The US dollar fell below the 7.0 mark against the offshore Chinese yuan for the first time since 2024.
The Divergence Between Hong Kong Stocks and the Offshore Renminbi: Is the Stock Market or the Exchange Rate 'Wrong'?
Historically, exchange rate movements have exhibited a strong positive correlation with both the A-share and H-share markets, as a strengthening currency often implies foreign capital inflows and improving fundamentals in China. Not to mention, Hong Kong-listed stocks benefit additionally from the translation of stronger Renminbi earnings into Hong Kong dollar-denominated EPS.
Institutions: The factors driving the continued appreciation of the RMB are gradually increasing, and market attention is beginning to rise.
Based on the seven rounds of RMB appreciation cycles over the past 20 years, the exchange rate has not been the decisive factor in determining industry allocation.
National Bureau of Statistics: Total retail sales of consumer goods in November amounted to 4.3898 trillion yuan, increasing by 1.3% year-on-year.
From January to November, the total retail sales of consumer goods reached 45.6067 trillion yuan, representing a growth of 4.0%. Excluding automobiles, the retail sales of consumer goods amounted to 41.1637 trillion yuan, increasing by 4.6%.
National Bureau of Statistics: Retail sales of consumer goods increased by 1.3% in November.
Data from the National Bureau of Statistics showed that in November, the total retail sales of consumer goods reached 4.3898 trillion yuan, increasing by 1.3% year-on-year.
PBOC: At the end of November, the broad money supply (M2) stood at RMB 336.99 trillion, up 8% year-on-year.
At the end of November, the broad money supply (M2) stood at 336.99 trillion yuan, representing a year-on-year increase of 8%. The narrow money supply (M1) reached 112.89 trillion yuan, up 4.9% year-on-year. The currency in circulation (M0) amounted to 13.74 trillion yuan, marking a year-on-year growth of 10.6%.
Are interest rate cuts and reserve requirement reductions imminent? The Central Economic Work Conference sets a clear direction for a more proactive fiscal policy and moderately accommodative monetary policy in 2026.
At the annual Central Economic Work Conference held in Beijing, China's top leadership announced the overall direction of fiscal and monetary policy for 2026, emphasizing the implementation of a more proactive fiscal policy and a moderately accommodative monetary policy. The focus will be on stabilizing growth, preventing risks, expanding domestic demand, and promoting high-quality development. The conference reviewed the economic performance of 2025, assessed the current domestic and international situation, and identified key policy tasks to lay the groundwork for the opening year of the '15th Five-Year Plan.'
Onshore Yuan Strengthens After PBOC's Currency Fixing at 14-Month High -- Market Talk
National Bureau of Statistics: CPI increased by 0.7% year-on-year in November 2025.
In November 2025, the national consumer price index increased by 0.7% year-on-year.
National Bureau of Statistics: CPI up 0.7% year-on-year in November, PPI up 0.1% month-on-month.
① In November, the national consumer price index (CPI) increased by 0.7% year-on-year; ② In November, the producer price index (PPI) for industrial producers rose by 0.1% month-on-month and fell by 2.2% year-on-year; ③ Official interpretation: The year-on-year increase in the CPI for November 2025 expanded, with core CPI continuing to rise.
China's Trade Surplus Tops $1 Trillion For First Time in November
Cailian Press C50 Sentiment Index Survey: New loans and aggregate financing in November may see a year-on-year decline, while the CPI is expected to continue its upward trend.
①New RMB loans in November may see a year-on-year decrease, with the market consensus forecast at CNY 0.4 trillion; ②Net government bond financing in November may impact aggregate financing figures, with the market consensus forecast at CNY 2.2 trillion; ③M1 may decline month-on-month due to a high base effect in November, leading to a slight widening of the M2-M1 spread; ④The CPI year-on-year growth rate may rebound significantly in November, while the PPI year-on-year decline is expected to narrow slightly.