What is different about this news than any other CB conducting monetary easing???  We at Emerging Money continue to be amazed at the level of concern around the Chinese economy.  (We also continue to be amazed that people think Chinese macro actually drives returns in Chinese stocks)

China's goals in cutting rates are not the same goals we have for China in cutting rates.  This rate cut is not about stimulating the economy per se.  The rate cut is to inject liquidity into money markets and to ease some of the debt burden on local governments.  It is also to simply continue to bring Chinese monetary conditions more in line with global monetary conditions. iphone_china

China has been running monetary policy way to tight.  We noted a month ago with the RRR ...

Please log into your account for more information on trading China and the rate cut...

Tagged with:
 

Leave a Reply