China macro

China’s efforts to stimulate is slowly coming through in the data. The FAI uptick is sizeable, and measures of credit lending and money supply expansion are up…

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… although you may need to zoom in to see it.

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Otherwise, it all still looks horrible, on trend, which is precisely what the market is telling us with the action in Hong Kong and mainland markets and with credit spreads, particularly in property.

We are some 11% underweight metals and mining, by industry group, in our direct equity portfolios and so we are not especially worried about the China slowdown.

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