China, Earnings & Batteries

Check out the accompanying pdf and chart collection. Executive Summary: China’s stock market has enjoyed a nice bounce this year as President Xi’s policies have grown more business friendly as the Chinese Communist Party meeting approaches. We remain concerned about the heavy debt loads forcing Chinese real estate development companies to restructure. We’re also watching Covid cases and Chinese exports to the slowing US and European economies. … We also take a look at which industries’ consensus earnings have been revised down by analysts so far this year. … Electric vehicles may emit less CO2 than internal combustion engines, but manufacturing and disposing of lithium batteries is an awfully dirty business.