Salient to Investors:

  • Dariusz Kowalczyk at Credit Agricole CIB said the surprising Flash PMI rebound is a major relief to markets after numerous signs suggesting further downward pressure on manufacturing and should put upward pressure on Asian currencies and rates.
  • Qu Hongbin at HSBC said overall the data still point to modest expansion, while the property downturn remains the biggest downside risk to growth, so he expects more monetary easing from the PBOC.
  • Leland Miller at China Beige Book Intl said the absence of deteriorating conditions for most firms, in hiring and margins, helps explain China’s reluctance to introduce more large-scale stimulus.
  • Ma Jun at PBoC said China will keep a steady and prudent monetary policy stance as strong stimulus measures are not needed because China is shifting its focus to employment from GDP, and monetary easing will increase economic and financial risks.


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