If you see a graph with a quick dip in the opening and an equally speedy bounce back, it might be time to sell!
The People's Bank of China (PBOC) announced on its website on the 10th that, given the recent persistent undersupply in the government bond market, it has decided to suspend open market government bond purchase operations starting January 2025. The resumption of these operations will depend on the supply and demand dynamics of the government bond market.
The suspension of open market government bond purchases by the People's Bank of China (PBOC) could lead to higher bond yields, which in turn may increase borrowing costs for companies.
Chinese stocks are plunging following this announcement, it likely reflects these concerns, as investors anticipate tighter financial conditions and potential slowdowns in economic activity.
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