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China’s state-backed ‘National Team’ may rescue stocks from trade war woes – Finance – Pulselive.co.ke

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  • The “National Team” is a group of institutional investors that was formed after a sharp Shanghai Composite index correction in 2015.
  • The team could step in again soon as the US-China trade war escalates, analysts say.
  • Follow the Shanghai Composite Index in real time here.

As an escalating trade battle with Washington raises growth concerns in Beijing, Chinese stocks may get a helping hand from state-backed investors.

Deutsche Bank analysts Michael Tong and Luka Zhu wrote in a note to clients out Tuesday that it’s increasingly looking like the “National Team” has and will continue to intervene in China’s stock market. The group of institutional investors was formed after the Shanghai Composite index crashed in 2015.

“Examining the National Team’s past behavior, we find the team usually steps in to act as a market stabilizer when the stock market experiences a rapid and sharp correction or during politically-sensitive periods,” the analysts said.

On Tuesday, trade tensions helped send the Shanghai Composite to its lowest level since 2014, down more than 26% from its January high, and close to the key psychological level of 2,638. A swift rebound followed, raising questions about whether the National Team could be propping up equities.

“Several signs from recent weeks suggest the National Team is on the cusp of lending support to the current fragile stock market, especially given the latest US tariffs,” Tong and Zhu said.

The Trump administration imposed tariffs on $200 billion worth of Chinese products Monday night. China then responded by placing duties on $60 billion worth of American products. Economists warn those escalations, which dampened hope for any near-term resolution, could further slow Chinese growth.

Bloomberg reported in August that investors were supporting Chinese stocks and urging insurance companies to buy them. Blue-chip stocks outperformed following the story, a potential sign the “National Team” provided either direct or indirect intervention over the past few weeks.

“When the National Team intervenes in the market, it tends to prefer adding blue-chip index stocks to have an immediate impact on the index,” the analysts said. “By making insurance companies the direct source of funding, the government looks to be encouraging more long-term capital to participate as a ‘market stabilizer,'” the analysts said.

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Institutional investors may also be motivated to act by more attractive valuations and low interbank borrowing costs, which it can leverage to strengthen its balance sheet.

The team held more than 1,100 stocks that were valued at more than $180 billion as of June 2018, Tong and Zhu estimate. It operates through at least 21 entities, including the China Securities Finance Corporation; Central Huijin Investment; Central Huijin Asset Management; five mutual funds set by the CSF; 10 managed accounts entrusted with asset management companies; and three wholly-owned subsidiaries of the State Administration of the Foreign Exchange.


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(Deutsche Bank)



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Is Orengo charting his path away from Raila?

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History of intense rivalry between him and Opposition leader, alleged sabotage in 2013 and 2017 elections and talk of betrayal ahead of 2022.

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Police Deploy Chopper to Rescue Students Lost in Forest for 4 Days –

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Three students who went missing after a forest adventure in Mt Kenya, Karatina, Nyeri County, were finally rescued on Saturday after four days in the jungle.

Four days without food, the boys told members of the press that they survived by the grace of God.

17-year-old Anthony Muhoro, Jackson Karuri, 17, and David Mukoma Kinyua, 20, went missing on May 4.

Muhoro is a Form Three student at Gitunduti Secondary School, Karuri is also a Form Three but at Ihwagi Secondary School while Kinyua is a student at Nyeri National Polytechnic.

Also found alive were two dogs that were in the company of the three when they were reported missing.

Read: Missing Businesswoman Caroline Wanjiku Maina’s Body Found In A Kajiado Mortuary

The rescue team comprised of police officers who after four days of futile search deployed a National Police Service chopper to locate the students who were on the verge of despair.

In the Saturday search, the Nation reports, the officers teamed up with Kenya Wildlife Service and Kenya Forest Service rangers to comb the forest in search of the students.

In an interview with the local publication, Muhoro revealed that they were hiking when they lost their way back home.

“It was by the grace of God that we survived for four days without food and other necessities. We thought we were going to die and kept praying,” Muhoro said in a phone interview.

Read Also: Missing Thika Millionare Julius Gitau Found Alive – Police

“We literally groped in the dark after losing our way back home. We survived on water and wild fruits since we had not carried any food.”

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According to the student, the trio entered the forest through Ragati gate but couldn’t trace their way home hours later.

“We found ourselves deep into the dense woods. I don’t know how far it was from the edges of the forest but we were exhausted,” he said.

“We could not even tell the time since it was constantly dark. That is when panic set in.”

They could not communicate with anyone back at home as their mobile phones lost signals.

Read Also: Son To Murdered Kiambaa Family Reported Missing

“We started moving in the forest, literary going in circles in a desperate attempt to find our way out,” Muhoro said.

Days later as they moved around the forest with the hope of finding an exit, they ‘miraculously’ met some police officers and forest rangers who alerted the rest of the search team.

Mathira East Police Commander James Baraza, who led the operation, said the trio’s disappearance was reported at Karatina Police Station the same day they went missing and a search operation launched immediately.

Email your news TIPS to [email protected] or WhatsApp +254708677607. You can also find us on Telegram through www.t.me/kahawatungu

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Police in hot pursuit of gang that car-jacked a Ruaka resident – KBC

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The vehicle was found abandoned in Kagongo village, having been vandalized.

Kiambu based detectives are pursuing a dangerous and armed criminal gang that car-jacked a Ruaka resident on Friday, before disappearing with his Toyota Premio as he drove to his residence.

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According to the Directorate of Criminal Investigations(DCI), the victim had pulled over by the apartment’s gate at Ruaka One River Apartments, unaware that a gang of three assailants was laying in wait for him.

As the gates opened, the driver’s window was suddenly smashed with an iron rod, before two shots were fired in the air from a pistol in an attempt to subdue him.

However, he managed to force his way into the parking lot, but before he could jump out of the car and scamper to safety, the trio caught up with him and roughed him up before grabbing his car keys and phone.

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On receiving the report, DCI detectives based at Kiambaa launched a manhunt for the suspects.

The vehicle was found abandoned in Kagongo village, having been vandalized.

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Its rear and front headlights, side mirrors, all tyres, nose guard, boot and radio had been stolen.

Detectives believe that the three suspects are part of a larger criminal syndicate operating within Kiambu County.

They have been targeting taxi drivers while posing as customers, only to turn against them at isolated places, then vandalize their vehicles.

” Some members of the syndicate have previously been arrested and arraigned in court.” Said the DCI

The DCI has cautioned Kenyans on this trend of crime.

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