Tightening Seems More imminent in China

According to Market News International, Peng Junming, an official within China Investment Corp and former employee of the State Administration of Foreign Exchange (SAFE)has said, “China has bigger asset bubbles than the U.S. The U.S. will definitely raise interest rates in the second half and China could hike rates even earlier than that.” I began reducing my exposure to China earlier today as it appears the Chinese government may be moving on an accelerated tightening cycle. Concerns over China’s actions will likely continue to have negative implications on several sectors and asset classes including, commodities, miners, and shippers (to name a few).