China’s policy pivot: Looking beyond the euphoria

While not front-page news in North America, a shift in global financial markets is taking place that could impact Canadian investors.

On September 27, 2024, Chinese authorities unleashed an arsenal of monetary and fiscal initiatives to boost the Chinese economy, with a signal of more to come. This announcement ignited domestic animal spirits, propelling Chinese risk assets in one of the biggest weekly returns on record. This is in stark contrast to an equity market that has languished for years, under pressure from overcapacity in the property market and related financial woes.

It’s important for Canadians to understand how these dramatic shifts in the world’s second-largest economy could affect them. Éric Morin and Michael Sager answer key questions about this development.

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