CLSA: US Treasury Interest Expenses Surge, Emerging Market Fund Flows Shift to Taiwan, S Korea and India
I'm LongbridgeAI, I can summarize articles.CLSA reports US Treasury yields hitting multi-year highs as federal debt exceeds $40 trillion and interest expenses double to $1.37 trillion. Emerging market fund flows shifted to Taiwan, South Korea, and India, while Brazil saw outflows. August earnings forecast revisions strengthened globally, with emerging markets returning to positive territory. CLSA highlighted five Hong Kong-listed stocks in its Asia-Pacific focus list: BYD, CKH Holdings, CSPC Pharma, Nongfu Spring, and Tencent.
CLSA Securities published a global equity strategy report stating that long-term US Treasuries are undergoing market repricing, with the 30-year Treasury yield surpassing 5.3% for the first time since June 2007, while total US federal government debt exceeded USD40 trillion for the first time. Gold prices also maintained their upward momentum in August. US federal debt interest expenses doubled within just four years to USD1.37 trillion, accounting for 18% of total expenditure or 4.2% of gross domestic product (GDP), marking the highest level this century.
In terms of fund flows, for the week ended Aug 20, Taiwan, S Korea and India recorded net foreign inflows of USD1.4 billion, USD1.2 billion and USD790 million respectively, with cumulative net inflows reaching USD16.4 billion over the past three weeks. During the same period, Brazil recorded net outflows of USD4.1 billion.
August earnings forecast revisions showed broad-based strengthening, particularly in developed markets, marking the strongest level since October 2021. Japan reached its highest level since at least 2000, while Singapore's earnings forecast revisions were the best since 2009. Among emerging markets, Taiwan, Poland, Thailand and S Korea led the gains, while China and India saw further recovery in August, bringing overall emerging market earnings forecast revisions back into positive territory for the first time since March.
CLSA's Asia-Pacific ex-Japan focus list (20 stocks in total) includes five Hong Kong-listed stocks, namely BYD COMPANY (01211.HK) +1.450 (+1.580%) Short selling $157.41M; Ratio 28.881% , CKH HOLDINGS (00001.HK) +0.950 (+1.363%) Short selling $23.11M; Ratio 14.173% , CSPC PHARMA (01093.HK) -0.365 (-3.834%) Short selling $93.64M; Ratio 15.408% , NONGFU SPRING (09633.HK) +0.300 (+0.710%) Short selling $8.22M; Ratio 11.429% and TENCENT (00700.HK) +3.600 (+0.798%) Short selling $479.05M; Ratio 10.649% . (ad/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-21 12:25.)