China starts the third quarter in stride and points to what may be a trend for the rest of the year. Manufacturing data out of China pointed to a further slowdown which will spill over in other parts of the global economy and impact currency pairs who depend on Chinese growth such as the Australian, New Zealand as well as Canadian Dollar.
The PBOC is not worried about a slowdown and will not adjust monetary policy in a drastic way in order to please investors, but rather focus on what they deem important which is the opposite of what central banks have done in the developed world. I think China does the correct thing here and focuses on long-term sustainable growth rather than an artificial inflation of equity markets with a moronic monetary policy.
While the developed world prints money and continues to amass huge debt loads which they need to finance, China lets their economy slowdown and pursue their own policies designed for sustainable long-term growth which counters the moronic money printing as practiced mostly by the two goofballs at the US Fed and BoJ.