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Continued Targeted Support Seen, Markets Still Look For More

CHINA

More of the same from China as newswire headlines stress the need to deepen financial support for the manufacturing sector, with an eye on advanced manufacturing areas, including AI & aviation.

  • Policymakers continue to focus on relatively targeted support.
  • Chinese market participants are still looking for more meaningful/deeper stimulus after the already delivered support, state-backed buying and tighter regulatory scrutiny allowed Chinese equity markets to base earlier this year.
  • The recovery in benchmark equity indices has stalled ahead of some technical resistance areas and the aforementioned desire for deeper macro policy support.
  • CNH FX looks through the headlines, as you would expect.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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