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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 STOCKS
China's CSI 300 index hasn't been hampered by the pullback in margin exposure in play since late January, which was triggered by a warning re: the need for appropriate monetary policy and potential bubbles in the local property and equity markets, courtesy of PBoC MPC member Ma Jun.
- The PBoC clearly remains cognisant of the broader employment of leverage across China and the risks that markets bubbles can bring. The timing of Ma's comments may have been key, as they came at a time when Chinese margin exposure was printing at the highest levels witnessed since '15.
- As flagged earlier, the Chinese LNY holiday consumption story, coupled with the broader reflation trade narrative has many looking for a positive session for Chinese equity markets after their 1-week hiatus, with the post-COVID outperformance story continuing to fuel interest in Chinese assets. The CSI 300 is indicated above its all-time closing highs pre-market.
Fig. 1: CSI 300 Index vs. Chinese Total Outstanding Margin Balances
Source: Bloomberg
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
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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