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Three reasons to like Chinese stocks (BlackRock, 4 min read) First, Chinese equities are exceptionally profitable, ranking highly on the return-on-invested-capital (ROIC) minus the weighted-average cost-of-capital (WACC) metric. Second, Chinese equity has cheaper valuation – 11x FY1 earnings for (Shanghai exchange). Third, its first-in-first-out (FIFO) virus exposure means that it is “the only place in the world where manufacturing surveys are positive”.
China’s Finance Minister Signals Rise in Deficit Cap (YicaiGlobal, 3 min read) China fiscal deficit to GDP ceiling appears to have increased from 3% to 3.5% this year. China is also expected to issue CNY1 tn ($140 bn) in corona bonds.