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[Tor]

This will be quick and sharp if it happens (I think it could well do). Over the past days, we have had persistent market rumours that China will raise interest rates by 54bps. This has spooked the Shanghai stock market. We doubt that there is any insider information in these rumours. Rather, we think that the market, for rational fundamental reasons, is expecting a rate hike over the coming weeks. We wouldn't disagree.