Just as investors are prepared to accept the gloomy prospects for global economy and corporate profits, China's economy seems to have come out of the doldrums with the help of the government's early easing policy.
At the same time, China's regulators have promoted the opening of financial markets to foreign investors and improved the accessibility of foreign investment, making China a potential target for investors considering diversification of their investments.
"The more stable China's growth you see, the easier it will be for you to take into account China's bond and stock markets. I think by the middle of the year, you will see that China's growth has stabilized. Kerry Craig, global market strategist at Morgan Asset Management in Melbourne, said.
But in recent weeks, the shift towards doves by the Federal Reserve and the European Central Bank has unsettled markets, causing bond yields to fall and stock index shocks.
Relatively speaking, the Chinese market is not moving. So far this year, China's Shanghai and Shenzhen 300 index. CSI300 has risen by more than a third, becoming the world's best performing major stock index.
Yields on the benchmark 10-year Treasury bonds have jumped in recent days as share prices have risen as investors'interest in the safest investments has waned.
Faced with the economic slowdown, the Chinese government began selectively relaxing its policies last year to guide more funds into the real economy to promote economic growth. Part of the slowdown is due to years of deleveraging and resistance from trade wars.
The promise of tax cuts and fee cuts, infrastructure spending and increased credit and reduced borrowing costs revived stalled credit growth and brightened corporate earnings prospects.
"Credit growth should continue to pick up this year as easing begins to affect credit creation," Chen Long, a China analyst at Longzhou Economics, a Beijing consultancy, said in a report.
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