Is China’s bull market in danger of ending？
Some are saying China’s bull market is in danger of ending because of risks that stimulus will disappoint. Well, I don’t think so. PBoC has plenty of room to stimulate if the need arises. And I’ve noticed that they are more sensitive to market developments these days than they were 5 to 10 years ago.
Foreign Investment are no longer fleeing. They are flowing back into China in record pace.
Unfortunately, more than a few “influencers” are trying to stoke fear again among investors in Chinese equities. The more they do this, the more it makes me feel bullish.
China’s stimulus is massive and can get a lot bigger. The property market is clearly on the mend. Retail sales just posted improvements in Jan/Feb period with online retail sales +7.3%.
Caixin mfg PMI was up to 50.8 in Feb while services PMI rose to 51.4. This is not what happens to economies where investments are “fleeing”.
According to Elara Securities’ Global Liquidity Tracker, foreign fund flows into China totaled $1.2 billion this week — the highest since Beijing’s quantitative easing triggered a buying spree in October.
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