China Economy

A few charts from Morgan Stanley today nicely illustrate Chinese steel woes.

Cross-posted from Investing in Chinese Stocks.

China’s trade balance for January was out yesterday and there’s is no other word for it than shocking.

Via FTAlphaville comes a very good list from Nomura on why China is not going to devalue the yuan: Pros 1.

Via FTAlphaville comes B0fAML calming the ruffling yuan waters: Indeed, the trend in diminishing profit growth among Chinese industrial enterprises has correlated strongly with real CNY appreciation in tradeweighted terms, implying limited economic upside for short-term CNY appreciation.

For a little while last night it was the good old days for the Aussie dollar as it flew on the news that China is cutting reserve ratio requirements for banks by 50 basis points.

From HSBC: “The headline HSBC China Services PMI fell to 51.8 in January from 53.4 in December.

From Reuters: A lot of money, sure.

Cross-posted from Investing in Chinese Stocks.

China released its official January PMI over the weekend and the news was more slowing with the headline sliding three points into contraction at 49.8, new orders were down 2 points and barely expanded at 50.2 and new export orders dropped 7 points t0 48.4.

Cross-posted from Investing in Chinese Stocks.

From Soc Gen’s Wei Yao via FTAlphaville: …a look at the composition of borrowers and lenders reveals the secret behind this exceptional stability.

From Westpac: Four of the five components that go into the calculation of the Westpac MNI China CSI declined from the previous month.

Patrick Chovanec has a piece in Foreign Policy explaining why China’s sale of treasuries isn’t bad news for the U.S., let alone the treasury market itself, Why China’s U.S.

Fresh from HSBC: Flash China Manufacturing PMI™ at 49.8 in January (49.6 in December).

Cross-posted from Investing in Chinese Stocks.

China has released its December QTR GDP figures and the annual figure came in at 7.3% versus 7.2% expected.

Cross-posted from Investing in Chinese Stocks.

Chinese stocks were down 6% today.

Cross-posted from Investing in Chinese Stocks: The Ministry of Housing is working on a couple of ideas to reduce housing inventory. One is to let (debt strapped!) local governments buy commercially built housing and turn it into public housing.

Exclusively from Michael Pettis’ newsletter: There is an implicit divide among economists covering China, for example, about how debt affects growth expectations.

Cross-posted from Investing in Chinese Stocks I believe the turn has been made in reserves.