ETF - FX Research: Risk of a sharp CNY rebound

Summary
- Trending CNY weakness is not a surprise alongside a softer economic backdrop, central bank stimulus and portfolio outflows.

- Debt concerns are not a global systemic issue, as foreign debt accounts for only 6% of the overall total and has been on a declining trend as of late.

- CNY weakness and portfolio outflows are likely to reverse if Chinese equities are included in key global emerging market benchmarks.