Do buy Chinese stocks

David Llewellyn-Smith

Wednesday 25 September 2024

I did tell you to wait until Xi Jinping gave you the green light and he has:

The PBoC will set up a swap facility of CNY500 billion allowing securities firms, funds,and insurance companies to tap liquidity from the central bank to purchase equities.
It will also set up a specialized re-lending facility of CNY300 billion for listedcompanies and major shareholders to buy back shares and raise holdings. The re-lending rate is at 1.75%, and banks would lend to customers at 2.25% for such loans.

QE for stocks is so Japan.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.