21
Jul
A winning return on Chinese stocks
Strong exports and industry. Weak domestic economy. Emergency measures implemented. Support from public spending. Inflation under control. Accommodative monetary policy. Strong yuan. Bullish outlook for stocks.
Key points
- Mismatch between the domestic economy and exports
- Emergency support measures implemented in Q2
- Second half of the year supported by public spending
- With no inflation, monetary policy will remain ultra-accommodative
- Stabilization of the yuan following an appreciation in 2026
- Mixed but positive performance in bonds
- REITs in Asia and China continue to struggle
- Reforms needed for securitized real estate
- Strong comeback for Chinese stocks
