Keep an eye on China’s Third Plenum meeting next week

Read full post at forexlive.com

This
week’s
CPI
data
showed
that
China
has
room
for
policy
stimulus
and
its
lackluster
economic
performance
certainly
argues
for
it.
There
is
some
optimism
with
some
Chinese
stocks
climbing
this
week
(from
low
levels).

The
leadership
meeting
will
outline
efforts
to
promote
advanced
manufacturing,
revise
the
tax
system
to
curb
debt
risks,
manage
a
vast
property
crisis,
boost
domestic
consumption
and
revitalise
the
private
sector,

according
to
policy
advisers
cited
by
Reuters.

What
has
me
worried
is
this:
On
Wednesday
China

announced
more
short-selling
curbs.

A
friend
writes:

Why
would
the
Government
inflict
such
short-selling
punishment
only
5
days
before
the
Third
Plenum
if
it
had
confidence
that
what
is
going
to
be
announced
at
the
Plenum
was
“what
the
people
wanted”?
Answer:
It
wouldn’t.

Expectations
are
low
but
it
looks
like
all
we
may
get
is
a
speech
from
Xi
highlighting
some
lofty
goals
but
no
details
or
a
clear
path
on
how
to
get
there.

The
meeting
takes
place
from
July
15-18.