Liz Ann Sonders Retweeted Jeffrey Kleintop@JeffreyKleintop 2h2 hours ago China's currency slid to lowest level in 2.5 years versus IMF SDR basket. The Fed has China in a Tough Spot -> http://www.schwab.com/public/schwab/nn/articles/The-Fed-has-China-in-a-Tough-Spot…
What's their band? Is it reaching their lower band? Sorry I don't get the implication of this but I think appreciation is more concern to China than depreciation.
China is trying to turn Yuan into a reserve currency, thus they need a stable currency and imagine what this does to people moving from the farm to cities all of a sudden their buying power disappeared.
Currency devaluation is the least politically damaging Tax of all. The Chinese will take it like a champ. No generation in recent history has had so much prosperity. The U.S has a more stealthy one under the newer CPI calculation.
HOME >> STATE COUNCIL >> MINISTRIES China’s business confidence improves in Q1: central bank survey Updated: Mar 22,2017 8:01 AM Xinhua BEIJING — Business confidence among China’s entrepreneurs improved in the first quarter of 2017 compared with the last quarter of 2016, a central bank survey showed on March 21. The entrepreneur confidence index grew to 61.5 from 54.1 the previous quarter and 43.7 during the same period last year, according to a quarterly survey by the People’s Bank of China (PBOC). Another PBOC survey showed bankers’ confidence in the economy also rose in the first quarter, up sharply by 11.2 percentage points from the previous quarter to 64.9 percent. Some 20.3 percent of the bankers polled said monetary policy was “relatively tight,” up from only 5.7 percent in the fourth quarter of last year. According to another PBOC survey, 52.2 percent of urban households believed housing prices were “unacceptably high” while 22.9 percent of the households polled said they planned to buy a house in the next three months, 2.8 percentage points higher than the fourth quarter of last year.
Quite a weird move, they just tightened borrowing conditions... Probably a rout based on fears on numerous claims, global rally is going to end.
That's huge... prices might not crash this year yet if that's the case in China tier 1 cities. But yes prices are very high, a condo in a good residence that still looks like it will fall apart within 20/30 years is (much) more expensive than a posh apartment in top areas of Paris. Houses and brand new towers are significantly more costly. And Hong Kong central areas seem in a world of their own.
Current news speaks of China tightening measures....fiscal and monetary. But damn look at that China/US gov. debt spread drop from around 300bp. To 150bp in 2015. Currency is still selling off even as credit spreads have leveled off. Another country forcing its people to buy risk in lieu of saving. Falling rates and currrency it makes sense to buy real estate and risk assets. Until.......