China showing signs of growth stabilising - Nomura

Nomura’s composite leading index for China rose in October, while the heat-map and the China growth surprise index also improved as noted by their Research Team.

Key Quotes

“We believe this points to a stabilisation of growth momentum, and we expect real GDP growth to be relatively stable at 6.6% y-o-y in Q4 from 6.7% in Q3. Our China monetary policy signal index rose to 0.62 in December, which suggests a higher likelihood of monetary easing. We think any easing would likely be implemented through other forms such as a liquidity injection and/or RMB depreciation, rather than rate cuts.”