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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
- In addition to the surge in geopolitical uncertainty, renewed fears of more ‘crackdowns’ have been weighing on Chinese risky assets in the past week.
- The Hang Seng Index is down nearly 10% since its February high, erasing all the early 2022 gains and currently testing a key support at 22,709.60.
- A break below that level would open the door for a move down to 22,000.
- Next key support to watch on the downside stands at 21,139.30, which was the low reached in March 2020 following the Covid19 shock.
- Interestingly, the reversal in China ‘liquidity’ in recent months combined with the easing policy have not been enough to support domestic asset prices, which continue to trade at 'depressed' levels.
- China tech stocks, which have been very sensitive to the dynamics of ‘liquidity’ in the past cycle, also look vulnerable in the short term, down nearly 50% since their February 2021high (CQQQ index).
- Interestingly, the CNY, which has historically acted as a ‘risk-on’ currency, has been strong this month, benefiting from ‘safe-haven’ flows from global investors (including Russia).
- USDCNY broke below its key support at 6.32 this week, gradually approaching the 6.30 level (April 2018 lows). Key support to watch stands at 6.2430 (March 27 low).
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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