Macro strategists at Nomura are tracking the China landing today:
In recent months, China has been stepping up its efforts to slow the economy and curb inflationary pressures, with both M2 and industrial production growth slowing substantially. Looking ahead, a key question is whether Chinese policymakers can achieve a soft-landing-like scenario of trend growth and lower inflation. While on balance we are optimistic, we also admit it is too early to judge the success of China’s anti-inflation policies. With this in mind, commodity prices already look a little expensive relative to China’s growth, the case for further CNY appreciation is still compelling and it is too early to buy regional equities in our view.
Click on charts to enlarge, courtesy of Nomura.
Right, that
China’s missing M2 ...
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