China Equity Strategy: Turning Less Bearish

On September 24, 2024, China announced measures to support the stock market, including interest rate cuts and help for the property sector. Improved sentiment is seen, but further gains rely on real economic improvements, with fiscal stimulus necessary to boost domestic consumption. Despite some positivity for risk-tolerant investors, high expectations for further government action could destabilize the market. The overall outlook for the APAC region remains Neutral, with a less negative view on China.