Business
Beijing’s Stimulus Package Fuels Investor Appetite for Riskier Chinese Assets Amid Record Market Gains
The actions of Beijing's stimulus are expected to enhance the appeal of more precarious Chinese assets to investors. Investors are responding positively to a substantial stimulus package from Beijing, which may lead them to accept higher risks concerning Chinese assets.
The CSI 300 Index has surged almost 11% this week, setting it up for its most impressive weekly showing since December 2014. The Hang Seng Index is also on track for a 9.1% increase this week, marking the largest progress since October 2011 if the current pace continues.
This week, the value of the offshore yuan rose above 7 against the US dollar, a height it hasn't reached in over a year. Meanwhile, the steady rise in China's debt market has momentarily halted, as the yield on the reference 10-year government bond has increased from an all-time low.
David Chao, a strategist at the American investment management company, Invesco, suggested that this could be an opportune moment to reconsider investing in Chinese stocks. He expressed his belief that investors might seize the opportunity to acquire Chinese stocks at the current rates, in anticipation of the suggested stabilisation fund and increased governmental backing.
Discover more from Automobilnews News - The first AI News Portal world wide
Subscribe to get the latest posts sent to your email.