The government is facing a dilemma. Businesses are struggling under the current environment so NDRC hopes rate cuts can reduce their cost burden, but easing monetary policies further risks fuelling property price bubbles, as people have little inclination to invest in the real economy.

Yang Hai

Categorized in : Industrials

I expect foreign inflows will pick up toward the end of trading day as passive funds are obliged to buy China stocks ahead of the inclusion, to some extent, it would help lift sentiment in a weak market.

The chance of Brexit is getting smaller, even if it happens, I'm sure central banks around the world would act to stem a possible market chaos, and the impact on China could be limited.

Once bitten, twice shy. Investors burnt by last year's market crash are still too scared to enter the market, which is why we see a trading pattern of quick profit-taking.

Higher inflation in a weak economy is not a good thing, because it limits the room for monetary easing while increasing people's living costs.

This time, the spotlight will be on policies to further reduce capacity as part of the government's supply-side reforms, in addition, there's now less yuan depreciation pressure, which means China can take a more proactive approach to liquidity easing.

It's true that valuation of Hong Kong shares is low, but they're exposed to global capital markets, where the general mood is 'risk-off'.

We've seen another stampede driven by panic, there's no good news in sight?while investors are being affected by the global 'risk-off' mood.

It's not wise to fight PBOC, a stabilising yuan would help recove... by Yang Hai

It's not wise to fight PBOC, a stabilising yuan would help recover confidence in Chinese stocks.

Despite rising volatility recently, the general trend of the market is still upward, the government will likely maintain loose monetary policies to ensure smooth economic restructuring.

The market is turning optimistic, against a backdrop of ample liq... by Yang Hai

The market is turning optimistic, against a backdrop of ample liquidity.

The GDP data is better than anticipated. It could mean that previously-announced stimulus, such as infrastructure investments, begins to work, the market is turning optimistic, in the backdrop of ample liquidity.

The U.S. raising rates would trigger fresh fears of capital flight, so leaving the rates unchanged is positive, though mildly, regulators' softening stance in the clean-up of illegal margin financing is also market-soothing. The market had expected an end-September deadline, but obviously, it's not the case.

These measures are inadequate. It's like just trying to put out a... by Yang Hai

These measures are inadequate. It's like just trying to put out a big fire with a glass of water.

The recent rebound had been swift and strong, so there's need for... by Yang Hai

The recent rebound had been swift and strong, so there's need for a technical correction.