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Hao HONG 洪灝, CFA
@HAOHONG_CFA
Person of the Year-Bloomberg BW;3xChina’s Most Influential Economist;3xEconomist of the Year-Asia Private Banker;“The man called China’s boom & bust”-Bloomberg
参加 May 2009
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Democrats' sweeping win is good for Chinese stocks. That's because a Democrat-controlled Congress is likely to rein in Trump’s erratic behavior, giving China plenty of time to prepare countermeasures. And the PBOC is trying hard to help, cutting the interest on the rediscount loan for stock repurchases to 1%. Given that several blue chips are now offering 5%+ dividend yields, it's a steal, and there should be interest in using this facility. There is concern about not being able to sell when there is capital gain, as the CSRC restricts reducing large stakes in listed companies. This restriction is a legitimate concern, but the rediscount loan term can be extended. As long as dividend yield is higher than the loan costs, there should be plenty of takers. Chinese stocks are turning higher after the mid-term results.
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