China’s supportive policies foster market confidence, Christy Tan says

Published 11/03/2025, 08:04
© Reuters.

Investing.com -- Beijing’s recent supportive policies, highlighted during the National People’s Congress, are fostering a "Xi Put", according to Christy Tan, an investment strategist at Franklin Templeton Institute.

This term refers to the Chinese government’s strategic actions that help to bolster stocks. Notable actions include pragmatic measures taken at the Congress and President Xi Jinping’s meeting with the CEO of DeepSeek and other business leaders.

These steps suggest a more welcoming regulatory environment for innovative businesses in China.

The Chinese market is currently viewed as a promising venue for investment, especially as the support for US corporates and earnings comes into question. Investors are exploring alternative destinations for their funds.

US equities are also undergoing a reevaluation following a significant run-up over the past two years, which inflated valuations. In contrast, Europe and China are emerging as attractive markets due to their relatively low valuations.

Despite Europe being somewhat overlooked in the past, there is a growing cautious sentiment acknowledging the reasons behind its neglect. Similarly, the cheap valuation of China’s market is also being reassessed.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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