EM ASIA CREDIT: Zhongsheng Group: Rating withdrawn

• RES 4: 130.60 High Aug 5 and a key resistance  
• RES 3: 130.26 High Aug 8  
• RES 2: 130.06 High Aug 14
• RES 1: 129.74/90 50-day EMA / High Aug 28  
• PRICE: 129.22 @ 05:46 BST Sep 2
• SUP 1: 129.07/128.64 Low Sep 1 / Low Aug 15 and the bear trigger  
• SUP 2: 128.40 Low Apr 9
• SUP 3: 128.19 Low Mar 27 (cont) 
• SUP 4: 127.83 76.4% retracement of the Mar 11 - Apr 7 bull leg (cont)  

Bund futures traded lower Monday but continue to trade above their August lows. Recently, resistance at the 50-day EMA at 129.74 has been pierced. A clear breach of the EMA would signal scope for a stronger recovery within the multi-month range. This would open 130.06, the Aug 14 high. Key support and the bear trigger lies at 128.64. Clearance of this level would reinstate the recent bearish theme.

In what seems like a rarity of late, the major bourses across China all trended lower today following yesterday's strong gains.  This comes as data shows Chinese investors are borrowing a record amount of cash to buy local stocks, further fueling a liquidity-driven rally that shows few signs of stalling.  The outstanding amount of margin trades in China’s onshore equities market climbed to 2.28 trillion yuan ($320 billion) Monday, surpassing the previous record of 2.27 trillion yuan in 2015.  An interesting perspective to note though is despite the latest expansion of margin trades, the size of China’s stock market also has nearly doubled in the past decade. The amount of leveraged purchases as a proportion of total market capitalization was 2.2% as of Monday, slightly above the 10-year average but far below 2015’s peak of 4.6%. (via  BBG)

• The Hang Seng is down -0.61% today, having finished yesterday up +2.15%.  The CSI 300 has lost ground by -0.91% after closing at new highs yesterday.  The Shanghai Comp is down -0.70% and Shenzhen down heavily by -2.3%.
• The NIKKEI has posted modest gains of +0.27%
• The TAIEX in Taiwan is flat today after finishing Monday lower.
• Following the weaker than expected CPI, the KOSPI is up +0.89% as investors begin to extrapolate a rate cut.  This following falls of -1.35% yesterday.
• The Jakarta Composite bounced back today as the Finance Minister re-assured markets and is up +1.05%.  
• The FTSE Malay KLCI is lower by -0.20% despite better than expected PMIs.  
• The NIFTY 50 has had two days of gains; up +0.45% Tuesday morning following +0.81% gains yesterday.  

In what seems like a rarity of late, the major bourses across China all trended lower today following yesterday's strong gains.  This comes as data shows Chinese investors are borrowing a record amount of cash to buy local stocks, further fueling a liquidity-driven rally that shows few signs of stalling.  The outstanding amount of margin trades in China’s onshore equities market climbed to 2.28 trillion yuan ($320 billion) Monday, surpassing the previous record of 2.27 trillion yuan in 2015.  An interesting perspective to note though is despite the latest expansion of margin trades, the size of China’s stock market also has nearly doubled in the past decade. The amount of leveraged purchases as a proportion of total market capitalization was 2.2% as of Monday, slightly above the 10-year average but far below 2015’s peak of 4.6%.

• The Hang Seng is down -0.61% today, having finished yesterday up +2.15%.  The CSI 300 has lost ground by -0.91% after closing at new highs yesterday.  The Shanghai Comp is down -0.70% and Shenzhen down heavily by -2.3%.
• The NIKKEI has posted modest gains of +0.27%
• The TAIEX in Taiwan is flat today after finishing Monday lower.
• Following the weaker than expected CPI, the KOSPI is up +0.89% as investors begin to extrapolate a rate cut.  This following falls of -1.35% yesterday.
• The Jakarta Composite bounced back today as the Finance Minister re-assured markets and is up +1.05%.  
• The FTSE Malay KLCI is lower by -0.20% despite better than expected PMIs.  
• The NIFTY 50 has had two days of gains; up +0.45% Tuesday morning following +0.81% gains yesterday.