Year of the Bull? Not according to the fundamentals...
With large account deficits, disinflation and widening interest rate differentials there are many reasons to not be bullish China.
Whilst on the political side there is a desperate need to keep CNY stable and stronger because China needs to attract capital inflows for the second half of 2019.
Why?
Because they are trying to facilitate the process of inclusion in equity and bond indexes to make China more attractive for FDI.
Risks to this trade are for deterioration in Chinese macro data and if equity markets sell-off.
Best of luck all and thanks for keeping the support coming with likes, comments, follows and etc.
Whilst on the political side there is a desperate need to keep CNY stable and stronger because China needs to attract capital inflows for the second half of 2019.
Why?
Because they are trying to facilitate the process of inclusion in equity and bond indexes to make China more attractive for FDI.
Risks to this trade are for deterioration in Chinese macro data and if equity markets sell-off.
Best of luck all and thanks for keeping the support coming with likes, comments, follows and etc.
