China Not Likely to Rush into Easing

Despite recent dovish comments this week by Chinese Premier, Wen Jiabao, minutes from the China State Council meeting show little urgency for monetary easing, according to a Morgan Stanley note dated May 24th. The research note points out that top policy makers are waiting for further confirmation of weakness before implementing aggressive policy easing. April data out of China has shown a lack of strength in the economy, but analysts at Morgan Stanley think officials in China feel overall growth there is stronger than the data suggests.

Traders can get access to the equity market in China through the ETF, iShares FTSE China 25 Index (NYSE: FXI).

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