PRC Macro
Dukes Hotel - 35 St James's Pl, London SW1A 1NY
Thu 24 Oct 2024 - 12:30 BST
The unambiguous message from this Politburo meeting is that 'growth first' has returned as the Party’s top priority.
Early meeting shows urgency to restore market confidence, opening near-term prospects.
Expect significant bank recapitalisation and new Central Government Bonds (CGB) for economic stabilisation.
The Politburo is committed to reversing the decline in property prices and boosting sales.
Supply controls may lead to credit defaults but offer long-term gains as the market stabilises.
China reflation will be one of the most important global macro trades for 2025.
Despite buoyed sentiment on growth and reflation in Q4 and early next year, PRC see potential weakening to renewable investment and China's steel exports could become the largest downside risks base metal demand in 2025.