Macro Strategist, Saxo Capital Markets

Kay Van-Petersen

Macro Strategist

Saxo Capital Markets

Thematic (Sector/Industry)

China Financials / Thematic (Sector/Industry)

Whilst a lot of people &ndash; internally here as well &ndash; are in the no CNY devaluation Camp on the renminbi, see a good piece on this from <a href="http://www.economist.com/news/finance-and-economics/21644205-devaluing-yuan-would-do-china-more-harm-good-currency-peace" target="_blank">The Economist.</a> I am surprised by Sunday&rsquo;s easing from the PBOC &ndash; not that they eased, but that it has come so quickly post the triple RRR cut.The most likely read from all this, is that the Chinese economy is not only in decline mode with no sign of improvement so far, but is in potentially worse shape than most officials perceived.And its not easy turning a ship much bigger than the Titanic, I would also be concerned if I was at the helm of that vessel.

Whilst a lot of people &ndash; internally here as well &ndash; are in the no CNY devaluation Camp on the renminbi, see a good piece on this from The Economist. I am surprised by Sunday&rsquo;s easing from the PBOC &ndash; not that they eased, but that it has come so quickly post the triple RRR cut.The most likely read from all this, is that the Chinese economy is not only in decline mode with no sign of improvement so far, but is in potentially worse shape than most officials perceived.And its not easy turning a ship much bigger than the Titanic, I would also be concerned if I was at the helm of that vessel.

Haitong Securities Co Ltd (A) (600837 CH)

Chongqing Rural Commercial Bank (3618 HK)

Shanghai Pudong Development Bank Co. (600000 CH)

China International Capital Corporation (3908 HK)

China Financial Services Holdings (2980 HK)

China Merchants Securities Co Ltd (A) (600999 CH)

China Pacific Insurance (Group) Co., (601601 CH)

Flying Financial Service Holdings (8030 HK)

China Huirong Financial Holdings (1290 HK)

Changjiang Securities Company (000783 CH)

China Merchants Securities Co Ltd (H) (6099 HK)

Shanghai Stock Exchange Composite Index (SHCOMP INDEX)

MACRO: IS A CHINA RENMINBI DEVALUATION ON THE CARDS?