China: President Xi's speech has hit the right tone - BBH

China's President Xi's speech at the Boao Forum today hit the right tone today and the market have reacted positively, according to analysts at BBH.  

Key Quotes

“The MSCI Asia Pacific Index rose 0.75%, the most in two weeks to test the 20-day moving average.  It is approaching a trendline drawn off the late January and March highs.  Chinese shares, both mainland and that trade in Hong Kong led the region with around a 2% advance.”

“Europe is following suit.  The Dow Jones Stoxx 600 is up 0.55% near midday on the Continent, led by consumer discretionary and materials sector.  Real estate and utilities are weaker.  The benchmark is at its highest level since March 16.  US shares are higher in Europe and the S&P 500 is about 1% higher.”

“President Xi did not appear to break new ground, though he announced, "a new phase of opening up."  He suggested China would allow more foreign participation in autos, manufacturing, and banking.  That it would do more to protect intellectual property, and expand imports.  There was nothing not to like.  However, the rub lies not with the declaratory policy but with putting the words in to action.”