BNY: Depressed Chinese Yuan Positioning Offers Re-Entry Opportunity
BNY strategist Geoff Yu notes that Chinese equities and the Chinese Yuan (CNY) remain heavily under-owned relative to Asia-Pacific peers, with cross-border holdings at very low levels, suggesting a potential re-entry point.
BNY's Geoff Yu highlights that positioning in the Chinese Yuan (CNY) remains deeply depressed compared to other Asia-Pacific currencies. Cross-border holdings of Chinese assets are at very low levels, indicating that investors are significantly underweight.
Yu suggests this contrarian positioning could present a re-entry opportunity for traders. The analyst points out that Chinese equities and the yuan are among the most under-owned assets in the region, which may lead to a reversal if sentiment shifts.
Source: FXStreet Forex News