Commentary
Beijing has begun economic stimulus measures after the 20th National Congress last month. But in typical Chinese Communist Party (CCP) fashion, the signals are mixed and Western investors hoping for broad economic reform will likely be left disappointed.
Chinese stocks have been in rally mode in November, especially the big tech companies, reversing an almost two-year-long slide. Shares have declined along with news of record-high officially reported COVID-19 infection rates, signaling that the market triumph could be more “dead cat bounce” than “traditional turnaround.”
On the real estate front, the Chinese Communist Party (CCP) introduced a slew of policy-loosening measures to support developers. Beijing leadership seems to have finally realized the precarious situation real estate developers were in and the systemic nature of its risks. …