GS: South Africa, Commodity heavy EMs (Peru, Chile), and North Asian equity markets have the highest sensitivity to China growth
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It acted after the local currency dropped past HK$7.85 per US dollar, the weak end of the band within which it is allowed to trade. The move will drain liquidity from the banking system and pushed up interbank lending rates on Thursday, potentially threatening a carry trade that has allowed investors to borrow cheaply in the city’s currency before investing in higher-yielding US debt securities. Source: FT https://lnkd.in/evksjsp9