China’s stocks are soaring, thanks to interest rate cuts by the government, but one market pro warned Tuesday that the fundamentals do not support the market right now.
“The fundamentals always win out at the end. What you have in China at the moment are very deep, structural problems that cannot be solved simply by reducing interest rates by 25 basis points,” said Simon Male, head of Asian equities at Auerbach Grayson.
China has recently introduced a series of measures, including rate cuts and reduction in the amount of reserves commercial banks are required to hold, in an attempt to ease monetary conditions.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015