More Asian banks are reporting tighter funding conditions + faster rise in NPLs than their Global EM peers

Shadow bank loans still grew during 2H13 – albeit more slowly – to around 65% of GDP. By contrast, conventional bank loans have leveled off to <135% of GDP.

With EU and Japan improving, US data subject to weather disturbances and China PMI falling <50, HSBC asks: Can the world de-couple from China?

Summary of our key trades and recommendations (including entry points) for the 10 Asian local markets under our coverage

#10 – Vietnam VGBs: Only bright spot – Carry – will cheapen further on higher Inflation risks.

#9 – India GSecs: Correction period expected for bonds and INR

#8 – Thailand ThaiGBs: Lower downside in bond yields and heightened political risks may pressure THB weaker