China: Cautious on the improvement in the proprietary indices – Nomura

Analysts at Nomura explain that their composite leading index for China and the heat-map improved in January and February, while the China growth surprise index fell.

Key Quotes

“We remain cautious about the sustainability of the growth recovery in January and February because of continued structural headwinds and signs of deteriorating growth quality.”

“Our China monetary policy signal index rose to -0.28 in April, suggesting a reduced likelihood of monetary easing in April, moving closer to the neutral zone.”