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Free AccessMainland stocks are up by ~5% as markets......>
CHINA: Mainland stocks are up by ~5% as markets start the week on a strong note
following Friday's efforts by policymakers to stabilise the markets.
- The Hang Seng has also risen 2.5% breaking back above 26000 to shift the focus
to the upside and the 28000 level.
- Rate markets have had a fairly muted response, with the 2-year swap rising
just 2bps to 2.89%, narrowing the discount with the US to 22.2bps from Friday's
cycle high of 24.1bps.
- A sustained rally in Chinese stocks is looking increasingly likely given cheap
valuations, bearish sentiment, and the support of policymakers. This would
provide a significant bullish force for the yuan to help offset the drag from
rising US yields.
To read the full story
Sign up now for free trial access to this content.
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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.