Chinas Treasury Holdings at a 20-Month Low

The video discusses China's shift in managing its exchange rate risk, moving away from direct FX market intervention and reducing US Treasury holdings. It highlights the importance of the HSBC PMI as an economic indicator, noting that a PMI below 50 signals a weakening manufacturing sector. The video advises caution in interpreting early PMI data due to limited data collection. It also explores potential policy implications, suggesting that despite deteriorating PMI numbers, policymakers may delay further rate cuts to allow recent measures to take effect.

What recent actions has the central bank taken in response to economic conditions?

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Why might policymakers be cautious about making further rate cuts despite deteriorating PMI numbers?

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