Unlike Donald Trump, who slavishly sought validation from the S&P 500, China’s President Xi Jinping seems impervious to the ups and downs of financial markets. Foreign investors have already come to terms with the fact that he doesn’t care about their billion-dollar losses. Even the new year rout in domestic stocks, which is starting to become a political problem, doesn’t appear to bother him. His technocrats are content with just enough policy tweaks to halt the market’s free fall. The much anticipated 2 trillion yuan ($279 billion) stabilization fund, which may spark a bull run, has not come about.

There is one market, however, that is perhaps dear to Xi’s heart. He is banking on a vibrant sovereign bond space to diffuse China’s municipal debt crisis. Its health is also essential in his bid to dethrone the dollar’s dominance in global trade. As of September, sovereign and quasi-sovereign issues accounted for close to half of China’s 133 trillion yuan inter-bank bond market.

QOSHE - The One Bull Market Xi Jinping Cares About - Shuli Ren
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The One Bull Market Xi Jinping Cares About

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31.01.2024

Unlike Donald Trump, who slavishly sought validation from the S&P 500, China’s President Xi Jinping seems impervious to the ups and downs of financial markets. Foreign investors have already come to terms with the fact that he doesn’t care about their........

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