Editorial | Channelling of funds into China markets to bring needed stability
Move by Beijing aims to counter volatility from threats of Donald Trump with flow of proceeds from pensions and insurance
Beijing has delivered its second round of economic stimulus in four months. The first, targeting the property market, local government debt and consumer demand, sparked a bull run in stocks that did not last.
The second, this week, conveyed a greater sense of urgency and resolve to stabilise stock markets. This follows a warning from newly inaugurated US President Donald Trump that he is considering further tariffs on Chinese exports.
It targets the stock markets with a sustained, progressive flow of funds to stabilise them against continuing uncertainty in United States-China relations.
The recent chain of events reflects that uncertainty and potential volatility. Only days ago China was basking in the resilience of its economy despite headwinds, evidenced by the achievement of its 5 per cent economic growth in 2024, driven by booming exports that balanced a sluggish domestic economy including a prolonged property slump.
Meanwhile, Chinese stocks slipped in the first week of 2025 to their worst start for nine years.
