A couple of things. “Potpourri,” if you like.
Early Monday, I spent some time editorializing around the train wreck that is the Chinese equity market. The problem is Xi Jinping, who at this point is a totalitarian dictator masquerading as an autocrat.
You know it’s bad when even your cover story is nefarious. For most people, being branded an autocrat is disparaging. When you’re Xi, it’s exculpatory: “Dictator? Totalitarian state? Me? My China? No. I’m just a well-meaning autocrat and this is my autocracy.”
Anyway, the point of the linked article was to emphasize underperformance in Hong Kong, where Chinese shares are under even more pressure than they are on the Mainland, where markets are subject to state intervention.
With that in mind, have a look at the figure below.
So, that’s an index which tracks price disparity between dual listings — i.e., A-shares and H-shares. The read-through: The gap between the Mainland and Hong Kong isn’t so much a “gap” as it is a ravine.
Apparently, that’s indicative of foreign investors moving money out of Hong Kong to other Asian locales, particularly Japan.
Meanwhile, SocGen’s Andrew Lapthorne asked if the UK stock market is “dying.” He used the figure below to help answer the question.
The trend isn’t great, Lapthorne wrote Monday, noting that it’s “not just the dwindling universe of stocks from which to choose, but also the lack of individual stock liquidity” that has observers worried.
The chart shows the number of stocks with a six-month average daily volume of at least $1 million.
“We would expect average daily volume to rise over time as the number of stocks grows and financial markets evolve,” Lapthorne said. “In that respect, the view from the UK is not at all encouraging, with 12% fewer stocks to choose from versus 20 years ago.”


