China: Rates, rebalancing, power and the stock market

A few weeks ago one of our regular readers asked if we could put together a video session covering some questions being raised about the changing dynamics in China. Both Kevin Bertoli from PM Capital and Tim Cheung from Morphic Global Asset Management invest in companies that are either listed in or operate out of China and they kindly gave me a few minutes to share their opinions. Over the past 6 months there have been 5 rate cuts in China and the expectations are that there will be more to come. We discuss the implications of these cuts and what it means for the underlying economy. Both of our guests highlight the political influences that need to be considered when viewing the actions of the PBOC and we also discuss the recent and quite dramatic rise in stocks listed on the Shanghai Exchange. Click on the link or image below to watch the video: