It looks like global investors really trust China’s Politburo
The jury is still out on whether this is a true Mario Draghi Moment.
Luxury goods are the biggest beneficiaries of communist largesse so far.
Keynes Comes to Beijing
Suddenly, a lot of people are placing a lot of trust in the Communist Party of China.
Marko Papic of BCA Research described this as Beijing’s “whatever it takes” moment.
This is because China has reached the point often seen in real estate and market crises where policymakers realize that austerity won’t work to lift them out of the trap, and they lose their squeamishness about being seen to bail people out.
“Effectively, Beijing has reached a point where the policy focus shifts from guarding against moral hazard to guarding against political risks,” he said.
John Authers Bloomberg 27 september 2024
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