China’s Li hitting wires with same old comments about Yuan…
Li – TO KEEP YUAN AT REASONABLE, BALANCED LEVEL
Heard today Goldman Sachs said it is not US rate hike, but Yuan that would affect global markets. I have a slightly different view on this – Markets are slowly accepting the fact that Yuan is on a long-term losing trend and its is not the currency but further Chinese slowdown that would hurt global economy and markets.
Rebalancing is far from done and we could see Chinese GDP drop to 3% or 4%. and the slowdown would strengthen deflationary forces across globe.