Here’s what happened in China markets today (7/24):
But there’s been little by way of specific dollar figures Beijing is willing to throw at the economy in sharp contrast to the hundreds of billions unleashed at the height of the Global Financial Crisis. Perhaps it could be partly due to uncertainty surrounding US federal rate policy, which remains hawkish despite waning inflation. Acting too soon with a huge stimulus, including lower Chinese rates, may result in a spike in demand for US dollars and cause instability in the yuan. $USD/CNH(USDCNH.FX$ $USD/CNY(USDCNY.FX$ $CNY/USD(CNYUSD.FX$
President also omitted mentioning that “property is not for speculation”. We can expect substantive measures to be announced in the coming weeks but it remains to be seen whether these measures will be enough to get this supertanker of an economy back on course. $Global X MSCI China Real Estate ETF(CHIR.US$ $Global X MSCI China Consumer Discretionary ETF(CHIQ.US$ $Trip.com(TCOM.US$ $H World Group(HTHT.US$
This increases the likelihood of Beijing stepping up its retaliatory measures following its decision to restrict exports of gallium and germanium - two key metals vital to the semiconductor industry. It’s not far-fetched to expect Beijing hitting Japan with rare earth export restrictions similar to what it did to Japan in 2010, sending rare earth prices up 50% and even more than 100% in some instances. $ASML Holding(ASML.US$ $Taiwan Semiconductor(TSM.US$ $Tokyo Electron (ADR)(TOELY.US$
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