The Asia Eight

Daily must-reads from the world’s most dynamic region

December 10, 2020

1 TOP STORY: China assets cut from index on Trump order

2 ATF TV: In foreign capital quest, India can learn from China

3 ASIA MARKETS: Nikkei, HSI fall; CSI300 flat

4 ATF BIG PICTURE: The appeal of China bond yields

5 NEWS: Chinese banks' outlook gloomy, says Moody's

6 NEWS: Asia's Covid response was better than the West's

7 TRADE OF THE DAY: Good news for the new year

8 NEWS: China's Great Wall to join NEV, smart car race

01 Top Story S&P cuts China assets from indices

Ratings firm acts on Trump's executive order, which aims to deter investment firms, pension funds and others from buying shares of companies designated by the Defense Department as backed by the Chinese military.

02 ATF TV India's China lesson

Political sincerity is required to tap international sources of capital and technology, and a hedging approach balanced between protectionism and free trade is fraught with danger; India needs to learn from the policies that brought China so much success. Lawyer Santosh Pai speaks to ATF TV

03 Asia Markets

Nikkei 225 falls 0.2% to 26,756.24; Hang Seng Index drops 0.4% to 26,410.59; CSI300 flat at 3,373.28.

04 ATF Big Picture

05 Moody's grim view

Rating agency indicates Chinese banks will remain at risk of new non-performing loans and high credit costs, which weaken profitability and capacity to generate capital.

06 Winning the Covid war

Many states in Asia have done relatively well in dealing with the coronavirus pandemic and reforms enacted this year in India and Indonesia could yield good fruit in the year ahead.

07 Trade of the day

"The good news is that aggressive easing in developed markets has driven rates and the USD lower, China is recovering well, and the roll-out of new vaccines is coming. 2021 will come with much better - even if cyclical - economic performance, which should help keep positive sentiment and support investment, whether portfolio or FDI."

Alicia Garcia Herrero, Chief Economist for Asia Pacific at Natixis

08 GW joins NEV race

China's Great Wall automaker has performed strongly recently, with robust sales growth in November, as it seeks to tap into enthusiasm for premium quality new energy vehicles.