(Corrects quote to say the brokerage doesn’t think data will change policy makers’ intention in second paragraph.)
China’s “surprising” trade data doesn’t change prospects for more policy easing given signs of easing consumer-price inflation, according to Goldman Sachs Group Inc. (GS:US)
“The fact that CPI came down faster than expected allows for more policy flexibility,” Helen Zhu, chief China equity strategist at Goldman Sachs Group Inc., said in a Bloomberg television interview in Hong Kong. “The trade data is a little bit surprising indeed but we don’t think that will seriously sway the policy makers’ intentions.”
Speculation that China’s stocks may rally in the short term as recent declines made equities cheaper may be overly optimistic, she said.
“Since the market has come down quite a bit, people are getting increasingly interested, but to say the market is going to be positioned for a massive run within a short period of time is a little bit too optimistic.”
To contact the reporter on this story: Allen Wan in Shanghai at email@example.com
To contact the editor responsible for this story: Darren Boey at firstname.lastname@example.org