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MNI MARKET ANALYSIS: Does China Need More Easing?

MNI MARKET ANALYSIS: MNI Global Inflation Gauge Nears Pre-GFC High
MNI MARKET ANALYSIS: MNI Global Inflation Gauge Nears Pre-GFC High

Executive summary

  • China risky assets continue to fall despite recent easing measures announced by officials as global risk off, renewed crackdown fears and downward revision in growth expectations have left equities vulnerable.
  • Investors have therefore started to question what could prompt a recovery in the medium term as the current environment has ‘erased’ China’s officials ‘easing effort’.

Link to full publication:

China easing - F.pdf

The PBoC is expected to release its February data on aggregate financing in the coming days, with China TSF expected to rise by 2.2tr CNY, down from 6.17tr CNY the previous month (chart below ). Even though January data tends to show strong seasonality, investors have been questioning if China needs to be more ‘aggressive’ in its easing policy.

Source: Bloomberg/MNI

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