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China is pumping a lot of cash into its economy to calm investors

China is pumping a lot of cash into its economy to calm investors

Finance
China has been pumping a lot of cash into its system to lift market sentiment, as the world's second-largest economy walks a thin line between curbing debt and keeping everything running smoothly.Last week, the People's Bank of China injected cash totaling 810 billion Chinese yuan ($ 122.4 billion) in five straight days of daily liquidity management operations. Those actions, which represented the largest weekly net increase since January, were in part a Beijing response to its 10-year sovereign bond yields spiking to multiyear highs, experts said."Surging Chinese government bond yields hit the nerve of policymakers, so in order to further prevent a greater surge, they injected liquidity into the system to improve market sentiment," said Ken Cheung, a foreign exchange strategist at Mizuho ...
Investors are pouring money into cyber-security sector

Investors are pouring money into cyber-security sector

Finance
Data breaches such as Equifax's recent hacking scandal are a nightmare for hundreds of millions of consumers. They do, however, offer lucrative opportunities for niche investors and venture capitalists who are banking on the ability of new cybersecurity, artificial intelligence and data protection technologies to solve one of the world's largest evolving problems."Security is one of the best near- to mid-term market segments to be in," said venture capitalist Rick Grinnell, who began investing in early stage cybersecurity and artificial intelligence firms more than 15 years ago and now operates his own venture capital firm, Glasswing Ventures.Venture capital firms invested $ 3.1 billion in nearly 300 cybersecurity startups in 2016, according to research firm CB Insights. Top-funded, privat...
Investors are set on riding the equity rally all the way through to Christmas

Investors are set on riding the equity rally all the way through to Christmas

Finance
With 41 days to go, it seems Christmas has come early this year for many investors.The returns in 2017, at least for equity investors, are staggering. The DAX is higher by some 16 percent since the start of the year; the S&P 500 has rallied 15 percent with both markets hitting record after record; and previously unloved emerging markets like Brazil have spiked 20 percent.Driving this is what many call a "sweet spot" for investors: a backdrop of solid growth, low inflation, strong corporate earnings and continuously supportive monetary policy from central banks, despite efforts to gradually tighten stimulus.On top of that, we are still expecting U.S. President Donald Trump's tax reform to be passed before year-end, which could give another fillip to risky assets, when eventually approve...
Backing Big Brother: Investors are pouring into Chinese facial recognition firms

Backing Big Brother: Investors are pouring into Chinese facial recognition firms

Finance
Buoyed by China's plans to build a ubiquitous CCTV surveillance network, Chinese and some foreign investors are pouring money into start-up technology firms that specialize in facial recognition software.At stake for firms such as SenseTime Group, Face++ and DeepGlint, is a multi-billion dollar global public and private market for facial recognition technology that can quickly identify individuals by measuring major elements of their faces, such as the distance between the eyes and the curve of the cheekbones.With the use of artificial intelligence (AI) the technology can recognise and track those wanted by the authorities by seeking a match from a database of photographs. In the commercial world it can be used for security at homes, workplaces and ATM machines, and as a part of payments s...
Investors call the end of the government-bond bull market (again)

Investors call the end of the government-bond bull market (again)

Finance
FOR the umpteenth time in the past decade, a great turning-point has been declared in the government-bond market. Bond yields have risen across the world, including in China, where the yield on the ten-year bond has come close to 4% for the first time since 2014. The ten-year Treasury-bond yield, the most important benchmark, has risen from 2.05% in early September to 2.37%, though that is still below its level of early March (see chart).Investors have been expecting bond yields to rise for a while. A survey by JPMorgan Chase found that a record 70% of its clients with speculative accounts had “short” positions in Treasury bonds—ie, betting that prices would fall and that yields would rise. Meanwhile a poll of global fund managers by Bank of America Merrill Lynch (BAML) in October found th