JP Morgan put out a note yesterday recommending clients buy Chinese equities. Their rational was premised on seasonality, with a view that the manufacturing PMI series have been far higher in March and April than any other month. The bank expects a 15-20% bounce in the coming weeks and while they are not focusing directly on the A50 index, clearly if there is a big PE induced move in the MSCI China index this will have strong ramifications for the A50, Hang Seng or H-shares (which can all be traded by Australian clients). Deutsche also reiterated its bullish stance on China yesterday, going as far as that the 'markets perception of China is wrong'. They re-iterate above 8% growth this year. With credit, trade and inflation data out this week this index is clearly one to keep on the radar.
Good wire - thanks for the intel Chris.