And now China is now expected to announce stimulas in the next three weeks, after their second straight manufacturing index report came in at 49, and 49.4 respectively. As most know, 2 quarters under 50 suggest recession and deflation. China cannot afford a recession on the back of their real estate disaster. If they dont stimulate, they are looking at another Japanese type, 10 year, depressed economy. Chairman Xi cannot survive from that politically.
They will have to export their way out of their economic mess. BTW, that was the underlying reason for the Biden-Xi summit in San Francisco. Biden knew Xi came with his "hat in hand", which is why Biden was comfortable mocking Xi a little bit (called him a dictator).
Image it, China asking the USA to bail them out via mass manufacturing purchases. Notice China never helped Russia with munitions support for Ukraine. Russia had to run to North Korea. That was the deal!!!
That would support the thesis of deep pockets stimulas, which would impact RE prices and demand.
I love international affairs. Fascinating.
GLTA and Happy New Year.
LYC Price at posting:
$7.16 Sentiment: Hold Disclosure: Held
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