China: Reforms, then the Politburo - ING
|Economic activity in China continues to run well, so the authorities can keep their focus on deleveraging and other reforms and the market seems to be waiting for announcements from the Politburo, which is a meeting to re-arrange the top leaders in the Communist Party (meeting expected to be held in 2H17), according to analysts at ING.
Key Quotes
“Of course, statements from these meetings are important. But reforms, which are equally important, are front-running the Politburo meetings. We believe that the government is setting the scene for the Politburo, given that the economy is already in “reform mode”. And this is already having positive impacts on the economy and markets. Apart from that, the stronger yuan continues to stem capital outflows. We expect the yuan will stabilize around 6.60 in September.”
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