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Supportive Policymakers Open Up Chinese Equity Opportunities

In a recent Weekly Insight, we noted that weakness in onshore Chinese equities was being inaccurately attributed to the ongoing trade war with the US. While Chinese currency moves can certainly be linked to US tariffs, we observed that the onshore stock market was in bear territory for very different reasons, including slowing economic activity in part linked to a slowdown in loan growth rates.  Chinese authorities have now reacted. A series of easing efforts have been introduced – individually small but with a potentially large cumulative impact. The measures span from fiscal and monetary policy to regulatory change, and appear...