24 Jan 2014
Flash: China; a big theme - Rabobank
FXstreet.com (Guatemala) - Strategists noted that yesterday’s big data draw was the unexpected slump in the Chinese HSBC/Markit manufacturing PMI to 49.6, below the key 50 level for the first time in six months.
Key Quotes:
“While China has two PMI series (HSBC/Markit and official), that dip is hardly encouraging, especially given there are still ongoing rumblings about wealth management products/trust loan defaults”.
“That backdrop is also overshadowing a steady drip-feed of reform proposals, which are still frustratingly vague: the latest development is that there have been 12 new Free Trade Zones approved, not just one in Shanghai”.
“However, details of how the first one will work are still absent, and yesterday the government would not even give the full list of locations of the 10 of the new dozen spots (the only exceptions being Guangdong and Tianjin)”.
Key Quotes:
“While China has two PMI series (HSBC/Markit and official), that dip is hardly encouraging, especially given there are still ongoing rumblings about wealth management products/trust loan defaults”.
“That backdrop is also overshadowing a steady drip-feed of reform proposals, which are still frustratingly vague: the latest development is that there have been 12 new Free Trade Zones approved, not just one in Shanghai”.
“However, details of how the first one will work are still absent, and yesterday the government would not even give the full list of locations of the 10 of the new dozen spots (the only exceptions being Guangdong and Tianjin)”.