Transactional Risk Profile of Huawei

Based on an in-depth review of the global business transactions carried out by Huawei over the past decade as well as the company’s associations inside China, RWR Advisory Group (RWR) highlights in this report the risk factors present when doing business with the company.  The intent is to present in one place a holistic view of the various ways in which Huawei’s transactions and business practices have undermined their value proposition.  ...

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 ...