Chinese assets have had an interest Asia......>

CHINA: Chinese assets have had an interest Asia session with a 40 tick reversal

in 10 year bond futures from their early highs coming in spite of deep losses in

stocks and failing to prevent a bearish reversal in the yuan.

- 10 year futures broke below last week's lows and look poised for a potential

bearish reversal amid widespread expectations of further PBOC easing. Cash

yields were last up 2.4bps. 

- A shares are off 1% while H shares are down 1.5% with Heath Care

underperforming amid a sea of red. Both the CSI300 and the HSI appear to be

resuming their downtrends. 

- USDCNH has gained 0.5% from its early lows which failed to take out Friday's

lows, with the pair triggering a potential double bottom.

- On the news front, a contraction in imports and exports in dollar terms seems

to have outweighed other positive headlines such as the increase in the QFII

quota and the promise of more government measures to boost Chinese imports this

year.