In this CIO Viewpoint Equity – China: More stimulus in the making – we evaluate the recent monetary and fiscal stimulus announcements. We expect further support measures to be announced in the coming months. Market volatility will likely remain high, but strong stimulus measures could uplift the economy in Q4 and drive an overall rerating for Chinese equities.

Key takeaways:

  • China announced significant monetary stimulus measures on September 24 which triggered strong market reactions. They followed the Third Plenum meeting in July which primarily focused on long-term growth plans. 
  • While the Finance Ministry did not declare the size of the fiscal package at its press conference on Saturday October 12, we expect further support measures for the economy will be announced in the coming weeks and months. 
  • While the market volatility continues, we believe these strong stimulus measures are likely to help boost macroeconomic data in late Q4 this year, which should support Chinese equities on a sustainable basis.

'

The CIO Viewpoint below is available to download. Please refer to the Important Information at the end of the memo for disclosures and risk warnings.

PDF

Language:

In Europe, Middle East and Africa as well as in Asia Pacific this material is considered marketing material, but this is not the case in the U.S.

The value of an investment can fall as well as rise and you might not get back the amount originally invested at any point in time. Your capital may be at risk.

No assurance can be given that any forecast or target can be achieved. Forecasts are based on assumptions, estimates, opinions and hypothetical models which may prove to be incorrect. Past performance is not indicative of future returns. Performance refers to a nominal value based on price gains/losses and does not take into account inflation. Inflation will have a negative impact on the purchasing power of this nominal monetary value. Depending on the current level of inflation, this may lead to a real loss in value, even if the nominal performance of the investment is positive.

This web page is not an offer to buy a security or enter into any transaction. The products, services, information and/or materials contained within these web pages may not be available for residents of certain jurisdictions. Please consider the sales restrictions relating to the products or services in question for further information. Deutsche Bank does not give tax or legal advice; prospective investors should seek advice from their own tax advisers and/or lawyers before entering into any investment.

Change of name: As part of Deutsche Bank’s Private Bank, the former International Private Bank also adopted this title on July 20, 2023.