Billionaire investor David Tepper is buying more of "everything" related to China after Beijing rolled out sweeping stimulus measures that exceeded expectations. Tepper has removed his self-imposed guardrails on Chinese stocks, stating that he previously had limits, but these are no longer applicable. He mentioned to CNBC that historical limits of 10% or 15% in Chinese stocks were now dismissed, although he acknowledged the possibility of setting a new limit during a pullback.
Analysts are wary of the challenges that might arise during the implementation of China's stimulus efforts, such as the willingness of investors to take risks and the time it takes for support measures to reflect positively in economic data. Some analysts argue that the current liquidity facility announced by China's central bank lacks significant impact, accounting for only 1% of the equity market's total capitalization.
Morgan Stanley analyst Laura Wang emphasized that the rebound's scale and sustainability will depend on escaping deflation and observing improvements in corporate earnings. With current economic challenges, the stimulus's effectiveness remains uncertain, requiring close monitoring of recovery indicators.
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