Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: bull_dozer who wrote (208085)	9/27/2024 9:05:37 PM
From: bull_dozer	Respond to of 217767

China Stock Euphoria Takes Hold as Traders Overlook Deeper Woes “The Politburo communication and market’s positive response to it suggest that the authorities have seized the initiative against China bears through rather forceful forward guidance on fiscal policy and real estate sector rescue,” said Homin Lee, senior macro strategist at Lombard Odier Singapore Ltd. Investors betting on more fiscal measures will be buying even if they remain anxious about long-term fundamentals, he added. But for those who’ve experienced multiple false dawns, there are plenty of reasons to be cautious. The current rally is akin to that seen when China abandoned its Covid Zero policy in late 2022. Back then, the CSI 300 rose to the brink of a bull market before collapsing again. Shares rallied more than 15% from February to May this year as Beijing tightened the screws on short selling and quant trades and state funds actively intervened, before resuming their slide as earnings failed to recover. More fundamentally, investors remain wary of increasing exposure materially after China’s yearslong crackdown on the private sector and tensions with the West altered their perception of the country’s investability. “The key risk is a continuation of policies which discourage large entrepreneurs from investing and growing their companies,” said Mark Mobius, chairman of Mobius Emerging Opportunities Fund. “It is important for there to be encouragement of innovation and private investment.” bloomberg.com