### POV: WILL THE NEW PBOC GOV FINALLY OPEN...>

CHINA: ### POV: WILL THE NEW PBOC GOV FINALLY OPEN UP CHINESE MARKETS?

- It looks like the appointment of Yi Gang (who completed some of his education

in the US) to the role of PBoC Gov could finally deliver the heavily awaited

market reforms that China has been pedalling for some time. While the reforms he

outlined earlier this week didn't contain any particularly fresh ideas, the

willingness to place horizons on them will be welcomed by many. While the

(previously vague) use of horizons isn't ground-breaking, the notable upsizing

of the Hong Kong-Shanghai stock connect has been given a short term target,

which gives watchers an immediate opportunity to asses Yi's credibility.

- The fact that Yi used his first major address as Governor of the PBoC to allay

rumours that China will devalue its currency in the event of a trade war shows

that he is perhaps more willing to act with a degree of global awareness than

his predecessor Zhou Xiaochuan

- China will still want to guard its capital account so expect the opening up to

be somewhat gradual, while a trade war could lead to Chinese policymakers

reverting to their traditionally introvert stance.