so you know

so you know

David Gaud of Edmond de Rothschild discusses the latest HSBC China flash manufacturing ...

45m ago
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DAVID GAUD OF EDMOND DE ROTHSCHILD DISCUSSES THE LATEST HSBC CHINA FLASH MANUFACTURING PMI, AND THE IMPACT OF THE RMB'S DEPRECIATION ON CHINA'S ECONOMY. SHOWS: HONG KONG, CHINA (APRIL 23, 2014) (REUTERS - ACCESS ALL) DAVID GAUD, SENIOR PORTFOLIO MANAGER, ASIA EX-JAPAN EQUITY, EDMOND DE ROTHSCHILD ASSET MANAGEMENT (EDRAM) 1. (QUESTION GRAPHIC) "What do you make of the latest HSBC China flash manufacturing PMI figures?" 2. DAVID GAUD SAYING: "Well that number shouldn't come too much as a surprise. I mean and if anything, it's relatively good news because there is no further deterioration. You know I think we are in a context in China where we are all waiting for the bottom and hoping that we've reached a trough and we are going to start to see numbers improving gradually. And this would lead at least to a better performance of the equity market. But clearly that number is not a great number. We know the reforms are actually taking place, they are massive. And they create some disruptions, some disorganization within the entire economic system in China. And so they shouldn't come too much as a surprise. Now are they sufficient to force the government to act and to create the conditions for a stimulus? Probably not. And the danger is that we may be in a kind of stag-flation situation in China where inflation is no longer a concern. The pricing momentum is not great and at the same time, the activity is not recovering nor deteriorating further. And whether this could be good or bad for the equities, probably not going to be great in the near term. Valuation-wise, we know China is extremely cheap. But clearly that number is not creating any momentum or specific view at this point. And so I think the consensus is very much divided. And so you know net-net, that's why the market is not reacting so much. The volume - trading volumes are extremely low. That may continue at least for another few months possibly." 3. (QUESTION GRAPHIC) "What kind of government support measures from China do you expect in the coming months?" 4. DAVID GAUD SAYING: "You know, I think the government as it is now is still very much focused on thes...