Among these policies, the 500 billion yuan swap facility announced to facilitate the purchase of shares by non-bank financial institutions stands out. These developments caused China's A50 futures contracts to close with an 8% increase. QCP expects the People's Bank of China to continue its easing policies, while it believes the US Federal Reserve will also join the global rate cutting cycle.
It is reported that major central banks, with the exception of the Bank of Japan, are preparing to inject more liquidity. These steps create a supportive environment for risky assets in global markets. The report also noted that the spread between the US 2-year and 10-year Treasury yields widened to 21 basis points, indicating positive expectations for economic growth. Such widenings generally have positive consequences for risk assets in the medium to long term.
