Despite additional easing and a 403.5 billion yuan 1-year maturity MLF operation, yuan is tumbling along with China (and Hong Kong stocks) following an ugly Caixin Composite PMI print (the weakest since June 2016).
New orders tumbled to 50.3, the weakest since Feb 2016…
Offshore yuan is extending Friday’s losses from the exuberant Trump trade headline squeeze…
China stocks are giving back Friday’s bounce…
And Hang Seng is plunging…
The PBOC skipped open market operations once again but conducted 403.5b yuan of MLF operations (matching the total maturity of MLF at CNY403.5 billion). President Xi just started speaking and took multiple jabs at President Trump:
Xi reiterated support for multilateral trade, globalization, and some stock standard language on China’s role preserving the global trading order.
Xi says globalization is an irreversible “historic trend”, and every nation should make their effort in it.
“The will of history will keep rolling forward no matter what.”
It does feel like his opening remarks are less of an olive branch to the US trade hawks and more of an admonishment of their outlook. Of course, China critics would counter that Xi has said all of this before.
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