Chinese markets finally seem to turning up the “risk”, following its policymakers’ recent announcements that hint at better economic stimulus for the nation.
The CSI 300 Index of mainland stocks rose 1.6 percent Tuesday, clocking its biggest three-day rally since mid-August 2016. China's 10-year government bond yields climbed, rebounding from their record lows.
For most part of the year, Chinese markets experienced a risk-off environment sparked by its government’s deleveraging campaign that sought to limit leverage and impose restrictions on bond trading.
But now, it seems market optimism, on the back of policy makers' latest moves:
On Monday, a State Council statement suggested that fiscal policy would be “more proactive”.
The PBOC offered to give 502 billion yuan ($74 billion) of one-year loans to banks.
PBOC’s newly released guidelines for the nation's $15 trillion asset management industry was less stringent than most people had apparently expected.
With these new promises from policymakers, risk taking in China seems to have found a new lease of life.