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![[WORKING PAPER] Equity Duration: What cease to hold and what still does? – Relative Perspectives on China vs. the US and the New vs. the Old](https://etfprod.premia-partners.com/articleImg/pic/default-cover-v3.jpg)
From a total portfolio perspective, global asset owners and allocators are increasing wary about the overall portfolio sensitivity to interest rate changes and ultimately risk diversification. The concept of “equity duration” was raised long ago and has been subject to debate for decades. While some absolute calculations fail to work in today’s markets, we believe the economic and financial intuition beneath still hold. In this working paper, we took a renewed approach to analyze the relationships from a relative perspective and with an overarching objective of total portfolio risks in mind.
Nov 26, 2020
A major global trading and geopolitical event happened last week, attracting relatively little commentary from a media more preoccupied with US politics and the pandemic.
Nov 24, 2020
As business activities in China mostly resume to a normal level, we also observed some mean-reversion in factor returns, and interesting rotation in sector returns. Still, China A shares continue to outperform the US and global equity markets. With “high-quality” growth emphasized by the 14th Five-Year Plan and “Dual Circulation”, we believe “Quality Growth” will continue to be the main tone of China A equities.
Nov 11, 2020
So, it is official: Exit Donald Trump, enter President Joe Biden. And when the cheering and crying is done, we are likely to see that the election meant more emotionally to Americans than it does economically for the nation, or financially for the markets. The big economic and market trends are unlikely to be changed by the election.
Nov 09, 2020
China’s 14th, Five-Year Plan is a refreshing reiteration of conventional supply side policies, at a time when Developed Markets are in the grip of very unorthodox economic policies.
Nov 04, 2020
The term "dual circulation” is one of the hot searches in China and receives great attention after President Xi first expressed this idea at a top official meeting held earlier this year. He then elaborated further that China’s economic model will be involving an internal circulation developing a substantial domestic market, and an external circulation deepening the international trade. The latest meeting of Communist Party’s Central Committee reinforced this policy will be the core component of the 14th five-year plan for the development between 2021 and 2025.
Nov 04, 2020
The latest economic data confirms the upward trajectory of Chinese growth, putting China on track to be the only major economy to register growth for the full year 2020. And it highlights the attractiveness of China’s asset markets and supports the case for continued outperformance against other major markets.
Oct 28, 2020
Two separate news items last week focused our attention on the gap in understanding about the rapidly changing energy landscape in China.
Oct 20, 2020
Yield curve steepening – which has been accelerating in recent weeks as the market contemplates a whopper of a stimulus package under a possible Biden White House – is likely to continue regardless of the winner on November 3.
Oct 14, 2020
Since COVID we have observed that many constituents in our Premia ETFs have been silver lining beneficiaries and continue rallying notwithstanding the market volatilities, unfolding COVID situation and US China tension. Here we share the conversation with our Co-CIO David Lai and team, on some frequent topics that come up often in our client conversations, especially around China new economy ETF (3173/ 9173 HK), which registered strong YTD return* of ~40% and have become the 4th largest A shares ETF in Hong Kong as consistent inflows since April tripled its AUM to ~US$285 million.Please click here for transcript to the disscussion.*as of October 12th 2020
Oct 14, 2020
BY TOPICS
Chart Of the Week
Alex Chu
The immediate threat of a US-EU trade war has subsided with President Trump’s sudden reversal on tariffs, but the underlying tensions remain unresolved. Denmark has already denied the existence of any deal to cede Greenland, suggesting this reprieve may be temporary. This constant policy whiplash reinforces the view of major institutional investors like AkademikerPension that US Treasuries are increasingly fraught with headline risk. As their CIO notes, the 'massive credit risk' posed by US governance issues means investors must look beyond the immediate news cycle and plan for a future where US assets are no longer the sole definition of safety. This environment validates the case for Asia Investment Grade (IG) as a superior alternative. The asset class is not only shielded from Western political brinkmanship but is also undergoing a positive transformation. We are seeing a healthy diversification in issuers, highlighted by Kuaishou Technology entering the market to fund its AI ambitions. This signals that Asia IG is evolving from traditional sectors into a dynamic, tech-forward asset class. For investors seeking stability without sacrificing growth, the Premia J.P. Morgan Asia Credit Investment Grade Bond ETF offers diversified exposure to these solid sovereign and corporate credits, serving as a prudent hedge against the unpredictable winds of Washington.“
Jan 28, 2026
