SaxoTV

#SaxoStrats - Long on China and here's why

684 views
September 10, 2015 change, chart, charts, chf, chfusd, chief economist, china, china 2014, china banks, china consumer spending, china credit bubble, china deflation, china economy, china economy growth, china equity market, china exports, china gdp, china gold, china growth, china in 2014, china manufacturing, china mobile, china outlook, china pmi, china policy, china politics, china rates, china slowdown, china stimulus, china stock market, china trade data, chinaeconomy, chinarai, chinese, chinese banking sector, chinese banks, chinese consumption, chinese economy, chinese economy outlook, chinese foreign reserves, chinese gdp, chinese growth, chinese interest rates, chinese rates, chinese retail, chinese stock market, chinese stocks, chinese yuan, christmas, em, emem, emerging, emerging currencies, emerging economies, emerging market, emerging market bond market, emerging market bonds, emerging market currencies, emerging market economies, emerging markets, emerging markets bond markets, emergingmarkets, employment, employment rate, ems, saxo bank, saxo tv, saxostrats, trading, tradingfloor.com
Head of Equity Strategy at Saxo Bank Peter Garnry explains why and how he's going long on China. Defying warnings about the slowdown of the world's second largest economy, Peter believes the policy response will be stronger from China than in other EM countries.

The recent devaluation of the Yuan and anticipated further stimulus should combine to help lift China, which is in the process of an economic gear change from an export driven model to a consumer based economy. 

Peter is using MCHI:arcxto to buy into an anticipated rise in economic performance while selling the EM ETF EEM:arcx.         

Key risks: significant rebound in commodity prices, weaker global macro, Chinese policy mistakes