Capital Flows to China Likely Weighed by U.S.-China Rate Differential -- Market Talk

Dow Jones
2022/08/22

0307 GMT - The U.S.-China rate differential may continue to weigh on capital flows to China, say Citi Research analysts, noting the PBOC's cuts in its one- and five-year loan prime rates earlier Monday. The U.S bank also expects a narrowing of China's trade surplus as exports come off and imports recover in the coming months. Overall, Citi forecasts USD/CNY to eventually rise toward 6.95, and it remains underweight CNY in its emerging-markets bond portfolio. USD/CNY is up 0.1% at 6.8222; USD/CNH is 0.1% higher at 6.8380. (ronnie.harui@wsj.com)

 

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August 21, 2022 23:07 ET (03:07 GMT)

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