https://www.linkedin.com/posts/jung-in-yun-cfa-66b17433_3rd-interview-with-cnbc-arabia-activity-7109858130162839555-BQ5I?utm_source=share&utm_medium=member_desktop
Q. China's holdings of US bonds have fallen to the lowest level since 2009
- There has been noticeable outflow of Capital from China. Basically, we are seeing Selling of US Treasury Bond to prop up RMB.
- This goes in line with the recent control over the gold market, China loosened the policy as soon as the RMB stablized. The actions we are seeing in the market is one of the policy driven actions to defend the RMB. we will see more of that in comming days.
Q. Sunac Holding debt restructuring plan
- Sunac Holding is one of the China's biggest real estate developers. It is important to note that Regardless of restructuring, one cannot get an easy exit from the breakdown of China's property sector.
- However, It is important to monitor what happens to Sunac and how it restructure debt because this could be a role model or a template on how other real estate developers will restructure their debt going forward, which includes Evergrande and Hungda.
Q. Meetings of Federal Reserve, the People's Bank of China and the Bank of Japan this week what is expectation
- Fed: no rate change, comments by the Fed officials will matter more.
- PBOC: May see another rate cut, don't expect bazzuca stimulus to come. We could further weakness in RMB but policy makers doing whatever necessary, so don't panic. But don't expect too much either. We need Combination of monetary policy and ficisal structural reform this requires a long time.
- BOJ: We need to pay attention to change in the stance of BOJ over the Yield Curve Control policy. The Yen has already lost a lot of ground, and BOJ will signal there will be a policy move in the future. We can have a potential rate hike by end of this year or early next year.
https://www.linkedin.com/posts/jung-in-yun-cfa-66b17433_3rd-interview-with-cnbc-arabia-activity-7109858130162839555-BQ5I?utm_source=share&utm_medium=member_desktop
Q. China's holdings of US bonds have fallen to the lowest level since 2009
- There has been noticeable outflow of Capital from China. Basically, we are seeing Selling of US Treasury Bond to prop up RMB.
- This goes in line with the recent control over the gold market, China loosened the policy as soon as the RMB stablized. The actions we are seeing in the market is one of the policy driven actions to defend the RMB. we will see more of that in comming days.
Q. Sunac Holding debt restructuring plan
- Sunac Holding is one of the China's biggest real estate developers. It is important to note that Regardless of restructuring, one cannot get an easy exit from the breakdown of China's property sector.
- However, It is important to monitor what happens to Sunac and how it restructure debt because this could be a role model or a template on how other real estate developers will restructure their debt going forward, which includes Evergrande and Hungda.
Q. Meetings of Federal Reserve, the People's Bank of China and the Bank of Japan this week what is expectation
- Fed: no rate change, comments by the Fed officials will matter more.
- PBOC: May see another rate cut, don't expect bazzuca stimulus to come. We could further weakness in RMB but policy makers doing whatever necessary, so don't panic. But don't expect too much either. We need Combination of monetary policy and ficisal structural reform this requires a long time.
- BOJ: We need to pay attention to change in the stance of BOJ over the Yield Curve Control policy. The Yen has already lost a lot of ground, and BOJ will signal there will be a policy move in the future. We can have a potential rate hike by end of this year or early next year.