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China flags more fiscal stimulus for economy, leaves out key details on size (www.reuters.com)
submitted 4 days ago by [email protected] to c/[email protected]
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The press conference "was strong on determination but lacking in numerical details," said Vasu Menon, managing director for investment strategy at OCBC in Singapore.

"The big bang fiscal stimulus that investors were hoping for to keep the stock market rally going did not come through," said Menon, adding this may "disappoint some" in the market.

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[โ€“] [email protected] 5 points 4 days ago (1 children)

China say it's economy is fine, yet it's doing a lot of shit to fix it.

[โ€“] [email protected] 2 points 4 days ago* (last edited 4 days ago)

My only guess is that they're trying to prop up investment in tech/semiconductors so as not to be left behind. That high growth stuff is really sensitive to lots of things including inflation/interest rates because a big payoff in the future that is eroded by inflation isn't nearly as appealing as a big payoff with future currency having the same value as currency right now, that kind of thing, discounted models and all that hooplah, next thing you know everyone's rotating into consumer staples, dividends, those kinds of safe havens where the money comes sooner and more consistently

Edit: perfect example probably COVID, US Fed rate target was 0.05% in April 2020 and a lot of people might recall tech stocks being on an absolute rampage afterwords (also due in part to stay at home Zoom stuff but still)

Double edit: and if I'm right in my hunch I think most people aren't accurately assessing geopolitical risk for western semiconductors/tech (Taiwan sits in that basket). I mean, if they're thirsty for dominance they're thirsty for dominance