Weekly Market Summary

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💡1. Wall Stret banks are making a big push to help private companies in Europe raise cash in order to beat local rivals and increase their chances of securing lucrative mandates for a fresh wave of blockbuster public offerings. Senior executives at Goldman Sachs and JPMorgan Chase said they were focusing expansion efforts on their private placement’s businesses amid a broader feeding frenzy in capital markets. They are betting that the increase in fundraisings by private companies will prove to be more than a temporary boom .

💡2. Goldman Sachs Asset Management is buying one of the world’s most distressed assets -- Chinese real estate debt -- even as other investors shy away. The firm has been adding a “modest amount of risk” through high-yield bonds issued by China property developers and denominated in U.S. dollars, said Angus Bell, a member of Goldman’s portfolio-management team. Goldman has also added Chinese government local currency bonds to its investments in what Bell described as a “risk-off” trade, based on People’s Bank of China’s willingness to provide liquidity in local markets as the economy slows.

💡3. Hong Kong will run a smaller deficit than expected this financial year because of increased income from land sales, but it will not translate into major spending increases, the city’s finance chief said on Sunday. Financial Secretary Paul Chan Mo-po said revenue from land sales hit HK$40 billion (US$5.1 billion) as of last month – a record high – following the sale of several prime urban sites. In his budget speech delivered in February, Chan forecast a record fiscal deficit of HK$101.6 billion, or 3.6 per cent of GDP, because of countercyclical fiscal measures and continued increases in recurrent expenditures.

💡4. The US Federal Reserve warned in its semi-annual financial health check overnight that stress in China’s real estate sector could pose “some risks” to the American financial system, pointing to the recent concerns surrounding China Evergrande Group. “China regulatory and property risks were cited as one of the top three risks to US financial stability over the next 12 to 18 months by market professionals surveyed by the Fed staff. Market participants also cited concerns about the potential escalation of US-China tensions as another risk that could destabilise markets, particularly surrounding Taiwan.

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One of the must-ask interview questions for banking and finance is: “Have you read any news recently?”, with the follow-up questions: “How would you link this news to the market and what investment suggestions would you give to your clients based on this news?” .

Showing your market sense and ability to provide feasible investment ideas would help to differentiate you from other candidates. Therefore, apart from the weekly news update / investment insights, we have also generated this Weekly Market Summary for you to have a quick understanding of the market development and tips to answer some hot discussion topics. Take a look of the summary and WhatsApp us in the group if you have questions.