Video : Prashant Bhayani's views on Asian Markets
The key topic for Asian investors currently is the China slowing economy and, can monetary and fiscal easing “Trump” the impacts of trade tension.
China has been already doing targeted measures of monetary easing: reserve rate cut, encouraging lending to SME companies, as well as now, fiscal easing, including infrastructure spending. We also expected a reinvigorated SOE reform process ahead of National People Congress later in the year. What we have seen in the past downturns of 2008, 2011 and 2015 is, the easing led to pick-ups in China Equities.
We have not seen that yet. Why ?