Launch of China “Bond Connect” Intensifies Risk Exposure for Foreign Investors

To much fanfare, China and Hong Kong launched on July 3 a bond trading link called “Bond Connect” that facilitates more widespread foreign investor access to the world’s third largest bond market – comprised of some $9 trillion in government, agency, and corporate debt (with much of the latter issued by state-owned enterprises). This new Hong Kong back door into the Chinese Mainland debt market is a “sister scheme” to the “Stock Connect” ...

China’s Inclusion in MSCI Benchmark Equity Index Spells New Risks for Institutional and Individual Investors

Although Chinese stocks were bumped up to an 18-month high as a result of Beijing having achieved its long-coveted inclusion in MSCI’s global benchmarks (including its flagship Emerging Markets Index) for the fist time (after three failed attempts), there are abundant reasons for caution among U.S. and other foreign institutional and individual investors. According to HSBC, as much as $500 billion from foreign investors could ultimately ...

The Risk Exposure of Russian Defense Companies behind the Atrocities in Syria

Although Russia’s mil­i­tary involve­ment in Syria has been offi­cially under­way since Sep­tem­ber 2015, its actions over the past sev­eral weeks and months have brought into sharp relief its delib­er­ate tar­get­ing of civil­ians, most notably in Aleppo.  As in Ukraine, the Krem­lin had hoped that the “fog of war” would inter­fere with the attri­bu­tion of the bar­barism and alleged war crimes tak­ing place.  West­ern ...