The RP07 Index rose 6.5% overnight, although not yet extreme it is directionally relevant given how dependent China’s growth now seems on credit availability. We may be looking at this the wrong way, but while the Flash PMI was still above 50 (signalling expansion), it nevertheless seems a bit disappointing in the light of record loan growth in January (it should be accelerating?).
The Shanghai Property Index closed lower, again.
Our caution on the miners remains, for now.
