China Cycle Flashes Warning for Treasuries, Market Seer Says
- Bocom’s Hao Hong anticipated 2015 China stock boom and bust
- Cyclical upswing in China’s economy ‘is peaking,’ Hong says
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Rising stockpiles of commodities in China signal the world’s second-largest economy is in store for a cyclical slowdown, with negative repercussions for global bond yields, according to a market strategist who anticipated the country’s 2015 boom-and-bust in stocks.
“The momentum in the current recovery is about to roll over,” Hong Hao, a Hong Kong-based strategist with Bocom International Holdings Co., wrote in a note Friday. “Higher frequency data, such as disappointing car sales, retail sales growth and a weak CPI, have confirmed our model results anecdotally.”