There’s nothing like a deluge of China econ to start your week.
Here are the numbers, just out:
So beats across the board, basically. “The economy extended a stable and improving trend in 1H, which provides solid basis for meeting the full-year economic growth target and achieving better results,” Xing Zhihong, spokesman for National Bureau of Statistics, said at a briefing.
But as noted a couple of hours ago, what did you expect?
here in a little while china will tell you what they want you to think their GDP was
— Walter White (@heisenbergrpt) July 17, 2017
The numbers came just after the PBoC set the yuan fix a the strongest in eight months and injected liquidity:
PBOC boosted the supply of cash in financial system by most in a month and set yuan’s daily fixing at the strongest level in eight months
— Walter White (@heisenbergrpt) July 17, 2017
Meanwhile, to follow up on something we documented extensively last week, the ChiNext is still in free fall, down almost 3%, to extend its worst weekly loss in nearly a year.
As Bloomberg notes, the index has fallen 14% this year, set for lowest close since January 2015. Weighing on the index Monday morning are investor concerns about authorities ramping up their deleveraging campaign, Central China Securities Holdings says. “Regulator’s weekend meeting reflects that China may further tighten the financial market, which has worried investors,” Zhang Gang, a Shanghai-based strategist notes. “People are rushing to cut risks.”
“Many China small cap shares have been driven higher by market liquidity in the absence of strong earnings or fundamentals,” Ronald Wan, chief executive at Partners Capital International Ltd. in Hong Kong, added. “If liquidity dries up, the market will be affected.”
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