Investors bet big-time China stimulus is coming with China's major political meeting of the year kicking off. Chinese ETFs, and the biggest ASX200 ETFs surge
Australia'ss biggest ETFs that track the ASX200 the VAS $Vanguard Australian Shares ETF(VAS.AU$ and IOZ $iShares Core S&P/ASX 200 ETF(IOZ.AU$ gained momentum rising for 7 straight days, hit new record all time highs, while the biggest Chinese ETFs listed in the US, the KWEB $KraneShares CSI China Internet ETF(KWEB.US$ ETF, the MCHI $iShares MSCI China ETF(MCHI.US$ China ETF and the FXI $iShares China Large-Cap ETF(FXI.US$ China Large-Cap ETF all made bold moves on Friday, with investors betting Aussie mining stocks and Chinese ETFs will likely see upside, with the National People's Congress annual meeting (opening Tuesday) expected to map out an economic growth target for the year, and strategies to get the nation on track.
What to watch?
Many analysts are expecting something similar to last year's target of ‘around 5%,’ which means the market would also expect a moderate step up in economic stimulus and measures to boost consumer and investor confidence.
If China's GDP growth forecasts are below 5%, it could signal less support for the economy is ahead and that could dampen confidence.
Conversely what should conider if the GDP target is 5% or above 5.5%?
Well it simply means we would see more aggressive stimulus and this would likely stoke fire into Chinese stocks, ETFs and Aussie mining stocks that are pegged to the China's growth story - think BHP $BHP Group Ltd(BHP.AU$, Rio $Rio Tinto Ltd(RIO.AU$, Fortescue $Fortescue Ltd(FMG.AU$ , as well as lithium stocks such as Pilbara Minerals $Pilbara Minerals Ltd(PLS.AU$, Liontown $Liontown Resources Ltd(LTR.AU$, Min Res $Mineral Resources Ltd(MIN.AU$, Core Lithium $Core Lithium Ltd(CXO.AU$.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Peterson111 : Global mining company BHP Billiton (BHP) rises the most in six months after Citi upgraded the company to "buy".
EvanderAU : I understand that.