The current sentiment for China seem to have shifted from Great to Slow growth and some said Crashing Soon(?).
Due to the recent China government clamping on the "shadow banking" and corruption, there is a suddenly lack of credit flowing in the China market. This might be short lived as the government might start their own easing and rescuing of failing investment product, but this also point to a greater issue that China is not doing well and rely heavily on credit and loans to support its economic.
This had also lead to a sudden migration of rich China people and might cause further drain on the economic.
While correcting shadow banking and corruption is a good thing, in the short run we should not be betting on a recovery on the China market.
Going forward for next week, I would short AUD and anything that rely on China for export
. Also I am bullish on Silver even if China might not be able to import as much metal this year. I am hopefully that the Western market would pick up the Precious metal slack.
PLEASE NOTE THAT FOREX TRADING WILL RESULT IN LOSING ALL YOUR MONEY. DO NOT TRADE BASE ON MY POST.
Due to the recent China government clamping on the "shadow banking" and corruption, there is a suddenly lack of credit flowing in the China market. This might be short lived as the government might start their own easing and rescuing of failing investment product, but this also point to a greater issue that China is not doing well and rely heavily on credit and loans to support its economic.
This had also lead to a sudden migration of rich China people and might cause further drain on the economic.
While correcting shadow banking and corruption is a good thing, in the short run we should not be betting on a recovery on the China market.
Going forward for next week, I would short AUD and anything that rely on China for export
. Also I am bullish on Silver even if China might not be able to import as much metal this year. I am hopefully that the Western market would pick up the Precious metal slack.
PLEASE NOTE THAT FOREX TRADING WILL RESULT IN LOSING ALL YOUR MONEY. DO NOT TRADE BASE ON MY POST.
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