China’s Markets Embrace Risk as Traders Bet Big on Stimulus
- Stocks cap biggest three-day rally since mid-August 2016
- Bond yields climb from 15-month lows, yuan drops on liquidity
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Chinese financial markets are rediscovering an appetite for risk not seen in months, taking cues from the government’s biggest push yet to invigorate this year’s slowing economy.
The CSI 300 Index of mainland stocks climbed 1.6 percent Tuesday, capping its biggest three-day gain since mid-August 2016, when economic indicators vindicated China’s moves to stabilize a slowdown back then. While there’s no guarantee of success this time, with the X-factor of a trade dispute with the U.S. at play, traders are betting big.