Expert: China Fundamentals don’t Support Market

China’s stocks are soaring, thanks to interest rate cuts by the government, but one market pro warned Tuesday that the fundamentals do not support the market right now.

“The fundamentals always win out at the end. What you have in China at the moment are very deep, structural problems that cannot be solved simply by reducing interest rates by 25 basis points,” said Simon Male, head of Asian equities at Auerbach Grayson.

China has recently introduced a series of measures, including rate cuts and reduction in the amount of reserves commercial banks are required to hold, in an attempt to ease monetary conditions.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.