PFM Trading has moved to assuage investor fears for the mainland equity market in light of renewed selling pressure.
PFM Trading has written to institutional clients in the hope of alleviating growing fears that the rout in global equity markets in general and that in mainland Chinese equities in particular could continue into the coming year.
In a midweek research note, the PFM Trading’s CEO, Warren Odey writes, “China’s equity market is neither as established nor as disciplined as its counterparts in the US and Europe. Many participants are inexperienced retail investors lacking the tools and insight that characterizes participants in the more developed jurisdictions and, therefore, volatility tends to be more pronounced.”
Odey goes on to say that PFM Trading remains “eminently bullish on the prospects for 2016” citing the range of conventional policy tools available to the People’s Bank of China (PBoC) including ample room for maneuver in terms of interest rates and the commercial banks’ reserve requirement ratio or “RRR”.
The fast-growing China-based e-commerce and technology broker-dealer says it is encouraged by the CSRC (China Securities Regulatory Commission) had chosen not to intervene in markets in the same way it did during the stock market rout last summer.
Edward Gold, VP at PFM Trading explained, “Much has been said about capital outflows from within China as investors try to protect the purchasing power of their money against a backdrop of central bank devaluation of the renminbi but we think it would be a very brave speculator indeed who would choose to go up against the PBoC which has access to $3.2 trillion in foreign currency reserves.”
About PFM Trading, Inc.:
PFM Trading, Inc. is an independent investment and wealth management practice based in China, and staffed by consummate professionals with a verifiable track record of success in the global financial markets. As at 1 January 2013, PFM Trading managed over $3.5 billion of assets on behalf of esteemed clients around the world.
Here at PFM Trading, we enjoy an enviable reputation within the wealth management community. To others, the phrases “unique approach” and “due diligence” represent no more than marketing-speak but to us, they are a code: a code that is indelibly inscribed upon every part of our organization.
PFM Trading, Inc.
New World Centre,
No. 6009 Yitian Road,
Futian District, 22rd Floor,
Shenzhen, Guangdong, China, 518035
Phone: +852 5808 4324