A second chance in China

China squeezing

Politburo shifting its monetary stance from prudent to moderately loose could be a big deal. Last time we saw moderately loose was in 2008, and it was followed by a huge package. This announcement came after normal trading but the SFCc1 (continuously traded equity future) surged on the announcement, trading above the 50 day. Note we are still inside the post squeeze range.

GS take on China equities: "We think equity upside could extend tactically given much lighter offshore positions compared to Sep-Oct".