There is lots of press out there raising the specter of bubbles popping up all over the Chinese economy as stimulus funds are pumped into stocks.
On a related note, an IMF official is on the wires saying the IMF staff views the Yuan as substantially undervalued, though it is hard to give a precises estimate of how much. (The last time they tried, the Chinese threw a fit…). A stronger Yuan would help in rebalancing the economy, the official said, from exports to consumption.
China’s monetary policy is appropriate but there is some risk seen in credit growth.
EUR/USD is steady at 1.4233.
