Credit Suisse: China will hike 100 basis points more
Rumours are that a hike is coming tomorrow already.
Fan Cheuk Wan, who is head of research at Credit Suisse Private Bank’s Asia/Pacific region, says she wouldn’t be surprised to see as much as 100 basis points in the near-term. But she doesn’t see China’s tightening becoming "aggressive". In her view, the loose monetary policy (negative real rates) are simply being normalized to reduce excess credit growth. The Chinese authorities do not want to choke off growth. As a result, she thinks growth and the earnings cycle will still stay positive. So she is bullish on shares.
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