Monday morning links
Chinese “reforms” continue: Xi Jinping using Mao’s old slogan “common prosperity” led to weakness in luxury goods stocks. The antigraft watchdog is now probing Communist Party leaders in Hangzhou, the hometown of Alibaba. The Party is also targeting celebrity culture and is accusing actresses of tax fraud. E-commerce company Pinduoduo’s committed US$1.5 billion to support farmers and rural communities. We seem to be witnessing the state reasserting control.
Southeast Asia COVID-19 infection rates: Cases are surging in the Philippines, and 25% of all tests come back positive. Meanwhile, there is evidence that new cases have peaked in Indonesia and Malaysia. But eventually, these outbreaks will all pass, and now is the time to invest.
Korean monetary policy: Korean banks tightened lending rules, and the Bank of Korea hiked interest rates from 0.5% to 0.75%. Positive for bank net interest margins, but potentially also weighing on the demand for loans.
The container shipping boom: Containe…