China: Economy appears gradually slowing - BBH

Research Team at BBH, suggests that in this week China's PMI figures will also be released but the market is less interested than it was last summer in China. 

Key Quotes

“Its economy, to the extent that one has faith in the data, appears gradually slowing, while credit growth has been strong, it has long passed the point of diminishing returns.  More central to investors concerns at the moment is what appears to be a change in PBOC operations. It has been using 14-day reverse repos to drain excess liquidity that had been driving bond yields sharply lower. 

China is hosting the upcoming G20 meeting as it does, the yuan is likely to come under new downside pressure.  The dollar appears poised to rise to new highs for the year against the yuan.  The high so far this year was set on July 18 near CNY6.7050.    As of the end of last week, the dollar had risen 4.5% against the yuan in 2016.”