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#SaxoStrats - Long on China and here's why

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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