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Chinese Stimulus Unleashed: 3 Ways In Which Clients Were Prepared For Opportunity

Writer's picture: Lester DavidsLester Davids

Tuesday, 24 September 2024 at 13h48


The Chinese government has introduced measures to support economic growth.


TradingEconomics summarizes it well:


  • The People's Bank of China (PBoC) introduced several measures to boost the economy amid concerns that the official growth target of around 5% might be out of reach due to recent weak data. Governor Pan Gongsheng said in a media briefing today that the central bank will cut the reserve requirement ratio (RRR) by 50bps, which will inject CNY 1 trillion into the financial system, with the possibility of another reduction of 0.25 to 0.5 ppts later this year. In addition, the PBoC will lower the seven-day reverse repo rate by 20bps to 1.5%, aiming to reduce short-term borrowing costs for banks. This move is accompanied by a 30bps reduction in borrowing costs of the medium-term lending facility. Mortgage rates will also be trimmed, with an expected average drop of 50bps, and the minimum down payment for second homes will be cut to 15% from 25%. Pan did not specify when the moves will take effect. Tuesday's action came after the US Fed started its monetary easing cycle with a large rate cut.


These are the 3 ways in which clients of Unum Capital have been prepared for opportunity.


  1. Commodities / Copper Futures: Strong rebound off the re-test level below $4.00. Now trading at $4.49 (Original Note Here)

  2. Chinese Technology: Alibaba - A Strategy Alert at $73.68. Today +$94.76 in pre-market (Original Note Here) - Edit: Closed 97.22 in the U.S. tonight!!!! +30%!!!!!

  3. Kumba Iron Ore (KIO) - Buy idea at R322. Recent high +R357.69 (Original Note Here)


For frequent access to actionable research insights and opportunities, get in touch today.


Lester Davids

Analyst: Unum Capital




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