Friday, October 23, 2015

Doubts over Chinese GDP - BTMU

FXStreet (Guatemala) - Analysts at Bank of Tokyo Mitsubishi noted the current conditions surrounding Chinese markets into the following week.

Key Quotes:

"Big bosses of China Inc., private and public, will be summoned to the Party Plenum next week so trading may be steadier in a range. There is some indication onshore banks may be doing less on/offshore arbitrage but we expect the CNH-CNY spread to hold.

Unusually for us, we have doubts about recently reported Chinese GDP. The key discrepancy is between steady SAQQ #s and deteriorating operating conditions and profits we hear from the corporate side (with PMIs also suggesting slowing economic momentum). Reported news of PBOC intervening via forwards to disguise reserve losses confirms continued capital outflows."
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