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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.
CHINA
- In the past few months, we have seen that China Total Social Financing (TSF), a broader measure of credit and liquidity, has been falling significantly with the annual change in the TSF 12M sum down from over 10tr CNY in October 2020 to 1.8tr CNY in April 2021.
- In the past cycle, tightening liquidity in China has generally had an impact on both domestic and international asset prices (especially risky assets such as equities).
- This chart shows the outstanding relationship between Chinese liquidity and China Tech stocks (CQQQ ETF), looking at the YoY change.
- China tech stocks are down over 25% since their high reached in mid-February; based on that chart, there is still significant downside risk in tech stocks as liquidity is expected to continue to contract.
Source: Bloomberg/MNI
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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