Will China’s Brake, Break Markets?

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China Throttles Down

 

China's large liquidity impetus from late-2022 has rapidly faded through March. We suspect further doses of stimulus will come, but the latest fall-off will feed through. As it does, markets will likely pull-back as cyclical and 'Risk-On' concerns build. This does not alter our longer-term view that the major stock and bond markets will be range bound in 2023. Within this framework, we continue to prefer cyclicals and still favour EM, on weakness.

 

 

 

See our latest published research, Global View: China Throttles Down – March 2023

 

 

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