China Focus : President X Says Take It Or Leave It
A short one on China ahead of the Golden Week.
Maybe the West has learnt a thing or two about Eastern diplomacy just like I learnt 20 years ago in culture class that it is rude to look an Indonesian directly in the eye, but UK’s Osborne is hailed a hero for keeping mum about about human rights during his visit to China and President Xi was quite un-harassed this week in America as Chinese stocks, bonds and currency were well behaved.
Most critics have run out of things to say about China and we are starting to hear some positives like Singapore’s investment company Temasek Holdings, Singapore’s DBS Group, UBS Group, International Finance Corporation and JPMorgan Chase as major players ahead of a planned initial public offering (IPO) by the Postal Savings Bank of China. http://www.straitstimes.com/business/spore-firms-to-buy-china-bank-stake
Still some question marks remain with reports of social unrest on the rise as factories run out of cash and construction projects idle as Macau sees more slump ahead in a crack down on shareholders and investors.
Yet President Xi says take it or leave it and there is no more basis for long run CNY depreciation and economic growth would be around 7%.
It is your choice and China ain’t begging for your support so if you ask me, I think China will close the month on an uptick.
Not surprising VW’s CNH bonds fell on the week but the rest were just fine as panic abates.
Leaving with the indicative prices and wishing everyone a happy Mid Autumn’s tonight !