By Henry Ren and George Lei, Bloomberg Markets Live reporters and strategists
Chinese stocks went on a policy-driven surge for the third time this year. On all three occasions, the advance began right before a major national holiday, though bullish momentum started to fade a few weeks after markets reopened in two instances. Is this time going to be different? Those who chased this week’s rally will likely find out at some point next month.
The half-life of this intervention will be 2-3 months, then markets will realize China is not stimulating demand. Then we see new decade lows, then China goes all in with $2TN+ fiscal bazooka https://t.co/hmCFY1dV7I
— zerohedge (@zerohedge) September 24, 2024