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22 Apr 2015
Three key stories worth noting in China – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team highlight three key developments in the Chinese market worth noting – Government’s cheerleading the equity markets, default by a state-owned company and the increase in trading accounts as a result of regulatory changes.
Key Quotes
“First, an article in the People’s Daily shows that the government continues to cheerlead the equity markets. The government-backed paper stated that the bull market “has just begun”.”
“The second is the first default by a state-owned company in China, a power company. This is an important signal and a small step towards reducing the endemic moral hazard in the Chinese financial system.”
“Third, a whopping 3.3 million new trading accounts were created last week. This is partially related a regulatory change by the CSRC allowing investors to have more than one account, but still, this is a huge number, especially since the total number of “accounts holding securities” increased by 2 mln.”
Key Quotes
“First, an article in the People’s Daily shows that the government continues to cheerlead the equity markets. The government-backed paper stated that the bull market “has just begun”.”
“The second is the first default by a state-owned company in China, a power company. This is an important signal and a small step towards reducing the endemic moral hazard in the Chinese financial system.”
“Third, a whopping 3.3 million new trading accounts were created last week. This is partially related a regulatory change by the CSRC allowing investors to have more than one account, but still, this is a huge number, especially since the total number of “accounts holding securities” increased by 2 mln.”