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Mainland Chinese stocks are trading....>

CHINA STOCKS
CHINA STOCKS: Mainland Chinese stocks are trading flat on the day after erasing
opening losses, with the CSI300 recovering the 3200 level. The relative
resilience in the face of the collapse in US stocks over recent days is a
positive signal suggesting downside risks to the Chinese economy are
increasingly being priced in. 
- The huge valuation gap between Chinese and US equity markets suggests
continued China outperformance. Chinese equity underperformance since the start
of the year has gone hand in hand with a weaker yuan, and we see China
outperformance as a prerequisite for yuan strength. However, we would likely
need to see an outright rally in Chinese stocks allowing the PBOC to take a more
hawkish shift if the yuan is to mount a sustainable recovery. 

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