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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CHINA
- The PBoC reported this morning that aggregate financing rose by 5.17tr CNY in June, significantly above expectations of 4.2tr CNY with new yuan loans rising by 2.81tr CNY (2.4tr CNY exp.).
- Hence, China ‘liquidity’ metric, computed as the annual change in China Total Social Financing (TSF) continues to rise, now up 2.8tr USD in the past year.
- Even though a recovery in liquidity has historically had a positive impact on domestic risky assets and some China-sensitive commodities (i.e. copper) or currencies (i.e. AUD), the easing conditions (policy and liquidity) have been barely enough to limit the downside risk on the real economy.
- Growth expectations in China have been constantly revised to the downside this year due to the strict ‘zero-Covid’ policy, which has been weighing on the domestic economy.
- In addition, the new surge in covid cases recently has been fueling fears of another lockdown in China; Macao recently announced to shut down all its non-essential business including casinos.
- Hang Seng Index has been retracing lower in the past two weeks, finding support at its 50DMA (21,011) on Monday; next support to watch on the downside stands at 20,000.
- On the topside, first resistance to watch stands at 21,475 (100DMA).
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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