Analysts at Morgan Stanley offer some optimistic remarks on the Chinese Yuan amid hopes of the US-China trade resolution.
Key Quotes:
“Macro community are more cautious or bearish on China given the worsening data.
This indicates that positioning in CNH is light, explaining its recent outperformance.
In addition “¦we believe exporters, who have accumulated about US$68bn of USD deposits since June last year (according to our estimates), could convert USD into CNY, driving USDCNY lower.
Foreign equity investors seems to be more bullish on Chinese equities.
Inflows should support China’s balance of payments.”
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