China Central Bank Monetary Policy Committee Said Will Resolutely Correct Pro-cyclical Behavior And Firmly Prevent The Risk Of Exchange Rate Overshooting
Portfolio Pulse from Charles Gross
China's Central Bank Monetary Policy Committee has committed to correcting pro-cyclical behavior and preventing the risk of exchange rate overshooting, according to Reuters.
April 03, 2024 | 9:12 am
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POSITIVE IMPACT
The commitment by China's Central Bank to prevent exchange rate overshooting may impact the iShares China Large-Cap ETF (FXI) by potentially stabilizing the market.
The announcement by China's Central Bank to correct pro-cyclical behavior and prevent exchange rate overshooting is likely to be viewed positively by investors in Chinese assets, including the iShares China Large-Cap ETF (FXI). This policy could lead to a more stable economic environment in China, which is beneficial for the large-cap companies that FXI represents.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75