There is much speculation in the media about China’s forex rate and its stock market.
I am on holiday with only an iPhone so my access to news and writing is limited.
We can see why China has moved slowly to reform its financial markets.
The world markets and exchange rates are precarious with qe and limited growth.
So it is easy to blame China but there are China issues and those who expect a straight line are not realistic.
We shall see over the next month what all this really means.
I know I have watched the rise of Shanghai since early last year and felt it was speculative based.
It was largely from funds who felt it was a way to buy into China. But clearly that was not the case.
Foreign and Chinese speculators have taken hold of a small market. At the same time it’s gyrations are being linked to assessments of the strength of the Chinese economy.
That is much more serious and it will take a few months to establish accurate understandings. But the economy looks in reasonable shape to me. Certainly better than many Developed economies.
Let’s watch and listen