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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 tough local finish for the Hang Seng (down 6%) and CSI-300 (down 2.7%) summarises the market view of confirmation for a third term for Xi Jinping - and the reshuffle of the politburo standing committee (including the removal of Li Keqiang and Wang Yang).
- Most analysts across both markets and politics are pointing to the removal of pro-reform voices and those arguing for market/economic liberalisation as the key factor behind the move, with some of the largest decliners including the likes of Alibaba and Tencent, both of which fell over 9% in Hong Kong trade.
- Moves have been exacerbated by reports of foreign investors being net sellers of a record $2.5bln in Chinese equity markets today, via stock connect link data.
- This puts USD/CNH north of 7.30 for the first time on record and will keep markets on watch for any further intervention. State banks were said to be selling dollars to contain the rise in the onshore USD/CNY rate last week, with the 7.25 level being defended.
Figure 1: Chinese currency, Hong Kong equities slide following confirmation of Xi's third term
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
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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