This is in response to US tariffs with Beijing set to convene top officials as soon as today to discuss said measures. It is being reported that officials from the Chinese state council, central bank, and finance ministry will be in attendance among others. At the same time, they will also be discussing measures to stabilise capital markets.
The headlines here are helping to lift domestic markets a little more ahead of the close. The Shanghai Composite index is now up 1% on the day with the Hang Seng also trimming losses down to 0.5% currently.
I think one positive takeaway from markets here is that typically, we’d see China hit back at the US with countermeasures by now. But instead, they’re resorting to this. There’s pros and cons to each approach but in a time when headline risks are driving markets, this will help ease some of tensions and nerves.
This article was written by Justin Low at www.forexlive.com.