Chinese banks in my watchlist

28 thg 9

With more rate cuts coming up from the FEDs in the coming months, we can reasonably expect the big banks in China will follow suit as well. Already, the government is pushing stimulus for these banks to lend out more money by lowering the RRR. But, is it enough?

Loans business remain sluggish in the 2nd largest economy. Read here

It will take at least 12 -18 months before we start to see an increase in banks increasing their rates again. Currently, with ultra low interest rates, that means these banks have to find more volume (businesses) to lend its money to. Already, the weak consumer demand is driving the corporates to tighten its belt and stay cautious in expansionary plans. This is a vicious cycle - less consumer spending leads to lesser productivity from corporations which means they need to borrow less and banks suffer more in terms of business.

The chart imo reflects my opinion about the China market where the bearish candles reflect it is at its peak and prices will continue to falter from here onwards. We could see it revisit the 5 dollars mark zone where I will be interested to buy more.

Please DYODD

2 thg 10

Ghi chú

added more this morning