Trade of the Day: Stocks sideways after recent highs; Gold and US Treasuries post gains; oil soft

Quote of the Day: “We are adopting a balanced approach across our China-focused strategies. We remain focused on domestically-oriented businesses, which we believe will benefit from China’s medium-term growth story. Our preference is for consumer companies with exposure to the consumption upgrade theme, renewable energy, pharmaceuticals, insurance and select TMT/internet/5G plays,” said Louisa Lo, Schroders head of Greater China Equities.

Stock of the Day:  Bosideng International rose as much as 9.9% after it said it would buy back up to 10% of its share capital to reflect “confidence in its own business outlook and prospects and would, ultimately, benefit the company and create value to the shareholders”

Number of the Day:. 12% – Coupon payable by Zhengzhou Zhongrui for a 2-year bond which priced on Monday, after it was downgraded to B3 last week. The bond is rated three notches above default.

Tip of the Day:  “We maintain our long-term positive view that ecommerce is the most resilient among different sub-sectors in China, where we believe data technology plays an important role in customer segmentation and personalized recommendations matching consumer needs. In 2020, we expect online shopping will continue to benefit from consumption upgrades with key areas of focus including competition based more on value than just price, the digital era with growing adoption of new retail, customized offerings and maximizing efficiencies with C2M, and increasing contribution from live streaming,” said Thomas Chong, a Jefferies analyst.

Financial markets hovered near their post-trade truce peaks as activity slowed ahead of the year end and investors avoided taking aggressive positions. Beijing cut import tariffs for goods including frozen pork, pharmaceuticals, paper products and some high-tech components starting from January 1 as the thaw in the 18-month trade war continued to spread. Over the weekend, US President Donald Trump said that a trade deal with China will be signed “very shortly” and after China’s President XI Jinping said the phase-one economic and trade deal between China and the United States benefits both sides and the whole world.

The MSCI Asia-Pacific ex-Japan index clung to its highest levels since June 2018, up 0.05%, the Nikkei 225 index was flattish, meandering around a 14-month peak and the Hang Seng index was up marginally as consumer, basic materials and healthcare sector gains pipped the losses in telecom, insurance and industrials. But the Shanghai Composite index fell 1.4% and the CSI 300 index retreated 1.3% after state-backed China Integrated Circuit Industry Investment Fund said it would reduce its stakes in some tech companies.