Chinese officials confirmed further monetary easing to support economic growth, including tax stimuli and credits – and this pleased investors. The announcement comes after constructive trade talks between the US and China, and the Chinese central bank’s announcement to cut banks’ reserve requirements by 1%. Will the bank ease its policy rate this year? This remains to be seen, as official numbers on Chinese growth in 2019 will be published during the National People’s Congress in early March. Equities are set for a green day: although Chinese exports fell 4.4% in annual terms, news of the government interventions boosted markets.
By Vincent Mivelaz