I think we are seeing some tightening because today we will see the release of GDP q/y, Industrial production y/y, also CPI and retail numbers amongst others, which I expect to be above expectations, hence the reason for the sudden tightening.
I think this is a good thing for long term growth in China, as long as they don't strangle the economy by tightening too fast. As long as there is no round 2 in the GFC, then I see this as a buying opportunity, especially this morning :)
