- Analytics
- News and Tools
- Market News
- More pressure on the Yuan if China open ups symmetrically – TDS
More pressure on the Yuan if China open ups symmetrically – TDS
Is China about to open up? If China opens up symmetrically it would once again put pressure on the services balance of China's current account, leading to more and not less pressure on the Yuan, according to economists at TD Securities.
China’s opening is not going to be a panacea for the global economy and markets
“In terms of markets impact if China opens up symmetrically i.e. allows more Chinese to travel outside of China and not just allows more inward traffic, it would once again put pressure on the services balance of China's current account, leading to more and not less pressure on the CNY. As such, we maintain our view of CNY underperformance both vs. USD and on a trade-weighted basis. Conversely, it would be positive news for the likes of THB, and other tourism related currencies in the region including SGD.”
“For the rest of the world, clearly a full opening up and dismantling of zero-Covid, would bode well, especially if Chinese growth reaches 6-6.5% as noted above, but this is not our base case. Moreover, even if growth does ramp up, China's domestically-focussed stimulus, ongoing domestic structural constraints, and weaker trade means that China opening is not going to be a panacea for the global economy and markets.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
