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The tightening U.S./China one-year......>

CHINA PRESS
MNI (London)
CHINA PRESS: The tightening U.S./China one-year govvie spread is not surprising,
and it is unlikely to lead to yuan depreciation nor necessarily result in large
capital outflows, the Economic Daily reported Monday, citing Ming Ming, chief
fixed income analyst at CITIC Securities and a former official in the PBOC's
monetary policy department.
- China's capital markets have not yet been fully opened, and its FX derivatives
market needs improving. These two factors will hinder the narrowing yield spread
from putting pressure on yuan, Ming said.
- China's economy remains resilient after cutting overcapacity, destocking and
the deleveraging campaign, and can run smoothly and steadily. Therefore, markets
need not worry too much that the spread will lead to capital outflow, Ming
added.
(Link to the story: https://bit.ly/2Rcijl2)
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com

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