@Pixabay.
Markets in China have had to endure a challenging and tumultuous 12 months.
Much of this commotion has been inflicted by external shocks, the most consequential of which have been a series of aggressive tariff hikes imposed by the Trump administration, followed by a series of retaliatory Chinese trade restrictions, including the export of rare earth minerals and magnets. In mid-June, it was reported that both countries had provisionally agreed to a framework for both sides to ease export restrictions that have long threatened the viability of global value chains.
The heightened global macro uncertainty that has arisen from these tensions has been pronounced, with China’s domestic outlook markedly affected. In mid-April, the situation triggered a mass sell-off of Chinese stocks, with spreads on some investment-grade bonds widening by 30 basis points, and benchmark 10-year yields on government bonds falling by nine basis points.
We look at what this will mean for institutional investors. What will this mean for insurers with large-scale investment into the world's second biggest economy? As we as the buying power Chinese investors will have on the world stage.
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