Head of China Research - Forsyth Barr Asia, Forsyth Barr Asia

David Millhouse

Head of China Research - Forsyth Barr Asia

Forsyth Barr Asia

Macroeconomics

China’s RMB has just had its largest two-day loss since 2008, and has also fallen a recorddiscount to the central bank’s reference rate (1.89%, nearing the limit of its trading band of 2%). &nbsp;I have recieved several questions on the move in the past 24 hours, specifically around "could we see a material correction to the Rmb." Although&nbsp; i see further downside to the RMB (a further 2-3% against the USD)&nbsp;i do not believe the Chinese government will look to manage down the RMB aggressively.&nbsp;I beleive the government will employ&nbsp;other administrative tools to support the economy, and conceptually there are several reasons why they WOULD NOT want a significant correction from here. <span style='color: black; font-family: "Calibri","sans-serif"; font-size: 14pt; mso-fareast-language: EN-US; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-ansi-language: EN-US; mso-bidi-language: AR-SA;'>Please see&nbsp;my Q&amp;A below, on the 10 major issues investors having being asking on the RMB outlook.

 China’s RMB has just had its largest two-day loss since 2008, and has also fallen a recorddiscount to the central bank’s reference rate (1.89%, nearing the limit of its trading band of 2%). &nbsp;I have recieved several questions on the move in the past 24 hours, specifically around "could we see a material correction to the Rmb." Although&nbsp; i see further downside to the RMB (a further 2-3% against the USD)&nbsp;i do not believe the Chinese government will look to manage down the RMB aggressively.&nbsp;I beleive the government will employ&nbsp;other administrative tools to support the economy, and conceptually there are several reasons why they WOULD NOT want a significant correction from here.   Please see&nbsp;my Q&amp;A below, on the 10 major issues investors having being asking on the RMB outlook.    

CHINA MACRO: My thoughts on the RMB move. Will we see a large correction??

China

China Southern Airlines Company Limited provides commercial airline services throughout China, Southeast Asia and other parts of the world.  The Company also provides other airline related services including aircraft maintenance and air catering.

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China Southern Airlines (1055 HK)

CHINA MACRO: My thoughts on the RMB move. Will we see a large correction??

China’s RMB has just had its largest two-day loss since 2008, and has also fallen a record discount to the central bank’s reference rate (1.89%,...

David Millhouse

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52-week Range

Market Cap (USDm)

P/E

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