Top Reads of The Week 24/12/2023

It's astonishing how quickly the year is coming to a close, and we're on the verge of entering 2024.

While the US markets experienced a robust rally in 2003, Chinese markets are still struggling to recover.

Foreign investors have been exiting in large numbers, and sentiment on the ground in China is lacklustre.

What's even more concerning is the ongoing deflation of the property bubble, which is adversely affecting consumer confidence.

I'll be spending sometime in Shenzhen next week to gain a clearer understanding.

Next week, we will be taking a brief hiatus.

I'd like to extend warm holiday wishes to everyone for this week.

Top Reads of The Week

Weekends in Shenzhen: Hong Kong Economy Hit by Neighbour’s Growing Allure

https://asia.nikkei.com/Economy/Weekends-in-Shenzhen-Hong-Kong-economy-hit-by-neighbor-s-growing-allure

An increasing number of Hong Kong residents are spending weekends across the border in Shenzhen to take advantage of cheaper rents, abundant amenities, and easier business regulations.

The cross-border flow hints at a broader erosion of Hong Kong’s economic vitality as Shenzhen emerges as a vibrant tech and finance hub.

China’s Shrinking Household Wealth, Families Strive to Save Nest Eggs

https://www.bloomberg.com/news/articles/2023-12-17/china-s-shrinking-household-wealth-families-strive-to-save-nest-eggs

China's household wealth has declined significantly due to falling property values and rigid pandemic restrictions, leading families to reduce spending and strive to rebuild their savings.

This reversal of fortunes for China's middle class comes after years of wealth accumulation and threatens both social stability and the foundations of the country's economic rise.

Wealthy Indians Splurge on Dubai’s Luxury Real Estate

https://www.bloomberg.com/news/features/2023-12-15/wealthy-indians-splurge-on-dubai-s-luxury-real-estate

Affluent Indians have emerged as the top foreign buyers of luxury homes in Dubai, lured by golden visas, low taxes, and a glitzy lifestyle. Buying binge makes Indians the biggest pool of luxury home purchasers as Dubai increasingly rivals traditional global hubs.

In South Korea, a Giant Bet on Overseas Office Blocks Is Going From Bad to Worse 

https://www.bloomberg.com/news/articles/2023-12-20/in-south-korea-a-giant-bet-on-overseas-office-blocks-is-going-from-bad-to-worse

South Korean institutional investors face mounting losses on large purchases of overseas commercial buildings made during the era of low interest rates, as vacancy rates have risen sharply.

 The bets totalling billions of dollars on office blocks from San Francisco to London are souring rapidly amid remote work trends and a global economic slowdown.

China’s Mega Banks Cut Deposit Rates Further to Boost Growth 

https://www.bloomberg.com/news/articles/2023-12-21/china-s-mega-banks-cut-deposit-rates-further-to-boost-growth

In a bid to channel funds into lending and stimulate China's flagging economy, the country's largest state-controlled banks have made further cuts to deposit rates, incrementally squeezing household income.

While the People’s Bank of China has avoided lowering benchmark rates, the stealth easing by the mega banks risks sparking capital flight and comes at the direct expense of Chinese savers.