Macro Forum: The Street View


China Image

In China, dovish policy extends to direct market stimulus to offset deleveraging efforts and VAT cuts with a focus on unlocking consumption growth. In February, MSCI announced that it would expand the weighting of China-listed shares in its indices, which, while incremental in 2019, will likely herald increased allocations over the medium term.

Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019
GDP* 6.4% 6.4% 6.2%
Inflation* 1.9% 2.3% 2.7%
Benchmark Interest Rate** 4.35% 4.35% 4.35%
Benchmark Bond Yield** 3.3% 3.06% 3.24%
Stock Market Index** 2493.9 3090.76 2978.88

* Year on Year

** End of Month


Real GDP Growth

Source: International Monetary Fund

China FX vs FV

Source: Bloomberg Spot Price and Actis methodology for Fundamental Value


Source: International Monetary Fund