China’s growth is slowing – something Isaac Poole at Oreana Financial Services expects will push Chinese authorities into further stimulus. He expects another reserve requirement ratio cut and a possible targeted rate cut to stabilise growth without flooding liquidity. Isaac says the longer China sticks with its zero COVID policy, the greater the chance the economy slows faster than authorities would deem acceptable ahead of the National Congress. The Chinese market is already pricing in an extremely pessimistic outcome for earnings and growth, which Isaac has resulted in Chinese equities being very misvalued. From a timing perspective, he expects policy will become even more pro-growth through Q1 through to the National Congress in October and Chinese markets to revalue over that period. Listen also for Isaac’s take on the US Fed’s timetable for rate hikes. (Source: Ausbiz)
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