As a reminder, we did have the National People’s Congress conclude this week. That’s the biggest annual legislative meeting in China and it would reflect poorly on Beijing if markets don’t sense any confidence from that. Amid tariff concerns and risk aversion in broader markets, Chinese stocks were poised to finish lower on the week. That before the surge higher today of course, which sees the CSI 300 index up over 2% to fresh highs for the year:
CSI 300 index daily chart
The plunge protection team at work? Or are investors perhaps suddenly feeling optimistic about policy support towards consumption activity moving forward? Or perhaps a bit of both?
As a reminder, China’s state council will be holding a press conference next Monday on bolstering consumption activity. If the details are lackluster again, we could see the optimism from today faded. So, just be wary of that.
