Who’s Ready To Send Chinese Stocks Screaming Higher?!
If you were concerned that Tencent and Alibaba were shouldering a disproportionate share of the burden when it comes to the MSCI China, you can rest easy because apparently, all it takes is one targeted RRR cut to make everyone completely forget about the ongoing effort to rein in leverage in China's financial system.
Over the weekend, the PBoC announced an RRR cut for some banks contingent upon their lending to small businesses. It's pretty straightforward as these things go: if you lend more
They’re probably still a buy until the likes of Kyle Bass et all finally throw in the towel.