Page 2 - Policy Easing News Today

This year’s performance by some of China’s favourite stocks has some asking: is it too early to buy the dip?

‘I want to see not just the monetary easing, but some interesting credit expansion coming from the banking system,’ says Rocky Wang Lei at Thornburg Investment, who previously worked at the People’s Bank of China.

It may be a good time to bet on Chinese stocks traded on the mainland and Hong Kong bourses over the next six months, according to new tactical trade recommendations by BCA Research.

Investors are falling out of love with small-cap start-up companies in Shenzhen on demanding valuations, as policy easing measures in China fail to whet the appetite.

Analysts from Natixis to Goldman Sachs continue to differ on the state of regulatory risk in China even as the Hang Seng Index posted its biggest weekly gain in 14 months.

With a property slump and pandemic-induced weak consumption dragging down the economy, the PBOC has limited room for manoeuvre. Policymakers will not want to undermine the policy goal of curbing property speculation.

Beijing has been more resolute in reining in the excesses in the property sector in the face of a sharp slowdown than markets anticipated. Expectations of a dramatic reversal are unrealistic and should not be the main reason driving investors back into China.

USD/TRY Forecast: USD/TRY Record High, Volatility Rising on Policy Easing Risks