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China bottom finally here? Or will it get lower?
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China economy a balancing act ... 🤹

China PBOC Keeps Benchmark Lending Rates Unchanged | Morningstar
Despite US Fed rate hike, China PBOC rate remains unchanged. This is a good sign that inflation in China is not as bad as US and there's other ways to curb inflation without hurting the economy - increase supply by promoting free trade.
The signal that China has bottom is clearer but global sentiment is crucial especially how the world and US view China economy. The high tech chip export restriction and TikTok ban are recent examples that US-China relationship is not business as usual. Fortunately Australia FM visit to China and Xi-Biden meet in Bali recently show sign of improving international cooperation.
The next is to monitor is how the easing affect the China property and travel restriction in and out of China. If we can visit China without any COVID-19 quarantine, this will be great news to China stock market.
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  • toomanyscammers : it's worse actually if china opens up ...inflation will go up more. and we'll have a tougher time battling inflation. the process will be longer.

  • ZnWCOP toomanyscammers: Thanks for your comment. I think China opening means more people will go back to work, production will increase and supply chain will ease too. This will imply increase international trade and export which will lead to supply increase eventually halt inflation. There'll be more China tourists which may drive up demand but it will benefit businesses and increase earning. Overall the benefits supercede negative impact in long run - remember the booming economy in the pre-covid time.

  • toomanyscammers : right now, inflation is due to consumer spending too. more people will start spending again if china is opened, driving up demand .

I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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