(Bloomberg) — A booming rally in China’s markets on a Beijing pledge to support growth ran almost immediately into questions of whether the gains will prove sustainable.
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Even as skeptics questioned the new promises from the Politburo, traders cast off weeks of pessimism to drive gains across stocks, corporate debt and the yuan. For them, it’s a show of faith or an opportunistic trade in China’s ability to tackle a wide array of challenges from mountains of local government debt to a slumping housing market.
Others from Societe Generale to Pinpoint Asset Management can’t shake off the feeling of deja vu, as Beijing has repeatedly fallen short of expectations. The rebound in Chinese markets as the nation emerged from strict Covid restrictions has long turned into losses that made them among the worst performers in the region following a stream of increasingly grim data.
“We are standing at a crossroads with many asking what type of policy are we…
2023-07-25 02:03:27
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