The Chinese economy has been slowing and yet it is projected by many analysts as a sustainable bull market, little ambiguous? Yet it is believable.
There has been a disparity between gross domestic product (GDP) growth and stock market performance in china.
There are so many dynamics that work in the Chinese market now. The economy will probably start to pick up in Q2 that is a good thing.
FIIs cash flows likely to increase in China, China is quite a volatile market however worth having possession of.
There has been a significant amount of monetary loosening, they are removing a lot of the kind of the systemic risk that people were concerned about with a local government debt, with the property market those sort of scary things that it is seen media ghost series and shadow banking, all of that is sort of reducing in risk.
The full raft of China activity and money/credit data this week represents an important benchmark to judge the efficacy of recent policy easing. We expect a better tone to the data, but only marginally so.
Currency Roundup:
The International Monetary Fund is now conducting a review to consider including the RMB in the basket of Special Drawing Right (SDR) currencies and will make a final decision at the end of the year.
At issue for the review is whether the RMB is a 'freely or widely used currency' in trade and financial transactions. Since the last SDR review in 2010, the IMF has been contemplating an explicit criterion-based approach in determining a currency's eligibility for the SDR basket.
