USD/CNH is up above 7.3000 and stocks in China are trading on the defensive ahead of new US tariffs tomorrow, BBH FX analysts report. 

Growth outlook set to remain unimpressive

"China economic activity edged up in February. The composite PMI increased to a two-month high at 51.1 vs. 50.1 in January as the manufacturing sector unexpectedly returned into growth and services activity ticked-up. The manufacturing PMI rose 0.3 point to 50.2 (consensus: 49.9) and the non-manufacturing PMI matched consensus at 50.4 vs. 50.2 in January. The private sector Caixin manufacturing PMI also improved more than anticipated to a three-month high at 50.8 (consensus: 50.4) vs. 50.1 in January."

"However, the growth outlook will remain unimpressive as long as policymakers fail to address the root cause of weak consumption spending activity: low household income levels, high precautionary savings, and high levels of household debt. China’s annual 'Two Sessions' National People's Congress meeting begins Wednesday. While detailed policy announcements are not expected, the sessions provide a valuable insight into the government’s fiscal and growth objectives."