Measures have been announced that China has decided to reduce its reserve ratio rate to boost liquidity of its monetary system
Is it Over?
Optimism has come in with a slight boost in share prices of Chinese companies. However, I would caveat against being too optimistic if it is a turnaround
Poor Government and Civil Service Messaging
One would remember back in Oct 2022 after President Xi's cabinet reshuffle investors were spooked due to the installing of his yes men; the president and cabinet shortly came out to reassure investors that business regulations will be lessened in an attempt to stabilise the market.
1 year on, the Chinese government and Civil service went on another wave of technology company reform and of course the worsening of the real estate market. We are now back to the lows of October 2022.
The Chinese Civil Service has been incoherent in the messaging it wishes to send to investors....