China: Major changes in its economic team - Rabobank
|Michael Every, Head of FMR at Rabobank, notes that the Wall Street Journal reports today that “China Shakes Up Economic Team as Power Shift Looms”; the suggestion is that President Xi Jinping is about to change China’s top banking regulator, the commerce minister, and the top economic planning official for his own technocratic associates.
Key Quotes
“Potentially, this could mean every bit as much a shock for markets as Trump is proving, if we are to infer from the headline that China might finally adopt more restructuring and less reliance on debt. Surely, that would mean a sharp drop in commodity prices, bond yields, Chinese equities, and currencies such as AUD, etc.? Logically, CNY should also fall too, of course.”
“After all, yesterday we heard news that Liaoning province reported a staggering 23% y-o-y drop in nominal GDP in 2016, pointing to the dodginess of Chinese official data before that date and/or the size of the economic disruption that can take place underneath the glossy headline GDP numbers.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.