China flexes its muscles | MarketTalk: What’s up today? | Swissquote

Show notes

Sentiment in Chinese equities reversed suddenly to a significantly more bullish state after the Politburo – which is the highest-decision making bodies within the Communist Party – pledged to embrace a ‘moderately loose’ monetary policy in 2025. Now, all eyes are on the Central Economic Work Conference, where the Chinese officials will discuss behind closed doors and ideally complement the monetary support with juicy fiscal support. It’s tempting to buy Chinese assets at significant discount, but don’t forget that 2024 was marked by stimulus hints that led to a market rally, but resulted in disappointing stimulus measures and a selloff.
In other news, Chinese companies reportedly cut off key supplies to the US and Europe necessary to build unmanned aerial vehicles for example, and the country opened a probe into Nvidia accusing the company for breaking their antimonopoly laws in the acquisition of Mellanox Technologies back in 2020.
More of China: Gold is up after a few stagnant weeks on news that the People’s Bank of China (PBoC) resumed buying gold after a 6-month pause – certainly to back a looser monetary policy and maybe to decrease exposure to US treasuries. Crude oil, on the other hand, remained capped into the $69pb level at yesterday’s rally fueled by Syrian uncertainty and hopes of Chinese stimulus.
Listen to find out more!