Via Westpac, comments on China's situation and projections for for the currency:
- wide-spread economic malaise under the weight of authorities’ COVID-zero strategy ... (but) talking points of policy makers to promoting investment in pursuit of long-term growth and prosperity.
- To be sure, we believe that the restrictive approach taken by authorities has to change -- preferably quickly given the low incidence of material health concerns but significant damage to sentiment.
- However, we also have to recognise Chinese authorities have an unparalleled capacity to quickly turn their economy through stimulus and co-ordination across all levels of government.
- If our growth view proves correct ... then CNY6.35 and CNY6.15 at end-2022 and 2023 respectively are readily achievable.