This podcast episode explores the recent rebound of Chinese equities in the offshore and domestic Asian markets. The rebound can be attributed to better than expected economic growth, government sponsorship in equities, and policy initiatives. While there is optimism among investors, questions about the sustainability of the rally and the role of government intervention remain. The sustainability of the rally depends on factors such as the delivery of earnings, implementation of promised policy easing and equity market reforms, and the forthcoming food plenum in July. The section also discusses concerns about policy delivery and its impact on the market's rally, as well as uncertainties surrounding Chinese GDP growth and the government's intervention in the housing market. The section concludes by addressing the recent announcement of tariffs on Chinese goods by the Biden administration and its potential impact on the Chinese economy.
