Yesterday we saw China cut its mortgage rate as the PBOC commenced its post COVID stimulus in a very targeted manner i.e. the ailing property market. However, as we saw yesterday other parts of their economy such as retail sales are also struggling and we anticipate further moves sooner rather than later which should eventually become supportive of our struggling resources stocks.
- When China starts down a path of stimulus they usually follow through in a very meaningful manner.
MM expects further economic stimulus from China
