Can the CCP even save stocks? Not on its current trajectory. Goldman has more.
MSCI China has experienced a roller-coaster ride to start 2024, falling 12% in the first 16 trading days on intensifying growth and policy concerns before bouncing 8% from the low at one point on a larger-than-expected RRR cut and rising National Team support.
Specifically, on January 23rd, Bloomberg reportedthat the government is planning to establisha Rmb2tn (~3% of A-share market cap) market stabilization fund focusing on the stock market, with the initial capital contributed by State-related entities’ offshore cash and cash-equivalent accounts.
