China: Stimulus And Tariff Uncertainty Clouds Investment Environment
Source: SeekingAlpha
2025-01-24 06:35:00 ET
Summary
- China's equity markets were policy-driven and directionless in 2024, with future performance hinging on government stimulus to combat deflation and potential U.S. tariffs.
- The Chinese government bond market has benefited from risk-averse domestic investors shifting asset allocations to fixed income.
- Prospects for both equity and bond markets in 2025 depend on the government’s next moves to revive the economy and restart a market-driven growth cycle in the face of deflationary pressures at home and the threat of higher export tariffs abroad.
By Vivian Lin Thurston, CFA, Partner and Clifford Lau, CFA
China’s equity markets performed relatively well in 2024 but remain policy-driven and somewhat directionless as investors await further potential stimulus announcements from the government.
Meanwhile, the Chinese government bond market has benefited from risk-averse domestic investors shifting asset allocations to fixed income. There is widespread agreement that bolder stimulus measures are needed....
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China: Stimulus And Tariff Uncertainty Clouds Investment Environment
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