ThinkForex - Analytics

ThinkForex

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Markets pricing in a Chinse hard landing

Markets pricing in a Chinse hard landing


Causes for concern
Manufacturing / exports data weak
Housing bubble
Falling stock market

Emerging markets are in turmoil 
BRIC countries under pressure

Markets now pricing in a Chinse hard landing


Comparison to the Asian crisis:
Trading partners have larger currency reserves


Tools:
RRR rumoured to have been cut 100-150 basis points over the weekend but this did not happen
Devalue thier currency further (to make exports more attractive internationally)

IMF want them to free-float

Rumoured to devalue Yuan 10-12%
Chinese authorities encouraged companies to borrow in USD before devaluing the Yuan, so this raises doubt over the further devaluation 

Khasakistan devalued over the weekend due to oil prices, not due to China. 
 



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