More than two weeks have passed since it was first reported that China was considering a 2 trillion yuan policy to stabilize its stock market, and there are only two and a half days left until the Lunar New Year holiday. Markets have been patient as there are other signs that help is coming, but Beijing will eventually have to load up on the bazooka and make it happen.
Failure to provide some relief at this point would be a middle finger to the stock market. And given Mr. Xi’s recommitment to “socialism with Chinese characteristics,” this may be the last straw.
But for now, the market is showing some patience. Hong Kong stocks rose 0.8% after gaining 1.5%, and Shanghai stocks rose 0.9%.
shanghai comp daily
I look forward to hearing any rumors or announcements.
This is an article about Goldman Sachs’ Chinese stocks via Zero Hedge.
“Chinese households allocate about 60% of their assets/wealth to real estate, but only 5% invest directly in stocks, the lowest level in the world. A bullish stock market is likely to experience weak leverage and returns, and as funding pressures continue due to the interest rate cut cycle, 220 million people owning a combined A-share market capitalization (37%) of USD 3 trillion It could be an effective means of wealth creation and sentiment-boosting for domestic retail investors (out of total).”
That’s understandable, but President Trump’s talk of 60% tariffs doesn’t help.Obviously it is I never have It will happen, but it will be difficult to come forward before the election.