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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
- China equities continued to fall on Tuesday amid rising Covid uncertainty, which keeps weighing on the domestic economic activity, and a ‘hawkish’ PBoC.
- The PBoC decided to keep its policy rate (1Y MLF) unchanged at 2.85% overnight while the market was expecting a 10bps cut following the recent dramatic tightening in financial conditions.
- The Hang Seng Index is now down 27% since last month, over 40% since its February 2021 peak and over 45% since its all-time high reached in early February 2018 when liquidity peaked in the EM world (pre-Covid).
- The index fell slightly below its 18,271 support line to its lowest level since April 2012; next support to watch on the downside stands at 18,000.
- Last week, China aggregate financing rose significantly less than expected in February by 1.19tr CNY (vs. 2.2tr expected), down from 6.17tr CNY the previous month.
- Even though there is strong seasonality in China TSF data, we previously saw that officials may need to accelerate the easing policy (either more liquidity or rate cuts) in the coming months to stimulate both the economic activity and risky assets.
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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