Speaker 1: Yeah, let's have it look good, but to be going
Speaker 1: on in China as well here and a little and
Speaker 1: more detail because we got Chinese regulators ramping up efforts
Speaker 1: to support the stock market, which saw a little reprieve
Speaker 1: from Chinese President she Jing pink speech. It's a discuss
Speaker 1: all this with Sofia hope that you costa Bloomberg Chief
Speaker 1: China Markets correspondent, Sofia looking at all this, there wasn't
Speaker 1: a lot for market bulls in China to get their
Speaker 1: teeth into, yes, exactly, not not not nothing really to
Speaker 1: be excited about over the speech. But um, there was
Speaker 1: an expectations that she would announce any kind of market
Speaker 1: friendly measures. You know, I've been writing about the the
Speaker 1: very idea or the very hope on Wall Street that
Speaker 1: we would get any signal of a COVID zero pivots
Speaker 1: out of this Party Congress, and and I've been saying
Speaker 1: that that hope was misplaced and very much so. I
Speaker 1: mean that was kind of you know, this speech really
Speaker 1: doubled down on the fact that it's a policy that
Speaker 1: China will stick too. So any conversations beyond that, beyond
Speaker 1: what will happen to Chinese markets, Um, really really have
Speaker 1: to be based on what happens to COVID zero. Uh
Speaker 1: so nothing really to for for traders to cling to.
Speaker 1: Nothing nothing specific, nothing new, nothing different, And it was
Speaker 1: really kind of damp squipt for markets. Yeah, you could
Speaker 1: kind of tick through. There were a few positives like
Speaker 1: pushing science and technology and and but there were plenty
Speaker 1: of negatives too, So it seems like the main takeaway
Speaker 1: was a slight negative for markets. But then we get
Speaker 1: the Chinese regulators talking about companies being freed up to
Speaker 1: buy back more shares and and easing some curbs on
Speaker 1: overseas mutual funds in making purchases. Will that will that
Speaker 1: suggest a little upward push? And there's always the national
Speaker 1: team as well, yes, really putting a floor on markets,
Speaker 1: And there was a little bit of a positive reaction
Speaker 1: to that as well. It's not just corporate buybacks, which
Speaker 1: we can be extremely effective. I mean, I'm sitting here
Speaker 1: in New York and that's been used in US markets
Speaker 1: as a tool to to support um prices. It's a small,
Speaker 1: small amount, it looks like it will be a small amount,
Speaker 1: and also still quite a lot of restrictions around that.
Speaker 1: But at least thirteen mutual funds in China announced on
Speaker 1: Monday that they will buy their own equity products, and
Speaker 1: that will also shore up confidence in the market. You know,
Speaker 1: if if mutual funds are buying their own equity products,
Speaker 1: then retail investors should have the confidence to do so
Speaker 1: as well. And also the sense that UM China on
Speaker 1: the regulatory side will and this kind of feeds back
Speaker 1: to the whole opening up narrative, will continue to reform
Speaker 1: financial markets and will continue to allow for overseas investors
Speaker 1: to play a bigger role. And that is really I
Speaker 1: think the story for next year where does China stand
Speaker 1: on that and does it still want overseas capital to
Speaker 1: come into its more because because we've had such severe
Speaker 1: outflows this year, and that would be what what that
Speaker 1: would be? What would really put a floor on Chinese markets? Well, Sophia,
Speaker 1: today we were expecting industry production GDP, most importantly retail sales,
Speaker 1: jobless numbers, fixed, our asset investments, and all of this
Speaker 1: has been delayed and no no reason given that. The
Speaker 1: thing is that doesn't exactly investive friendly, is it. I
Speaker 1: think this is a classic case of officials in China
Speaker 1: not knowing how to communicate to financial markets, or maybe
Speaker 1: not really seeing that as a priority. I mean, I
Speaker 1: think the what really kind of spooked or confused analysts
Speaker 1: and investors is the fact that this was done so
Speaker 1: last minute. I mean, if had China said two weeks ago, um,
Speaker 1: you know, we were not going to release this key
Speaker 1: economic data because every single important person is gathered and
Speaker 1: and and very distracted doing something else in Beijing called,
Speaker 1: as we know, the party Congress, then that would that
Speaker 1: would have made a lot of sense. I mean, I
Speaker 1: remember commenting two weeks ago, you know, wise China releasing
Speaker 1: the third quarter data in the middle of the party converse,
Speaker 1: it makes no sense. But the fact that they decided
Speaker 1: with no explanation to change or to delay, um, so
Speaker 1: last minute, I think, really, um, you know the China
Speaker 1: China needs to learn, I think, how to how to
Speaker 1: kind of do that part better? Just communicates market, make
Speaker 1: sure that things like this don't unnecessarily confuse people, because
Speaker 1: that's what gets people nervous. There might have been a
Speaker 1: little bit of a bounce in there of slightly more
Speaker 1: than say three point three percent for GDP, and and
Speaker 1: uh that that would be better than the prior quarter,
Speaker 1: But in any case, much below the target. But let's
Speaker 1: go back to like your first comment about how we
Speaker 1: may see some short term support. It's almost like if
Speaker 1: you see a dead cat bouncing in the US and
Speaker 1: on Wall Street, whether you just want to go in
Speaker 1: there and buy, knowing that further down the road there
Speaker 1: may be some losses. Do you think we'll see some
Speaker 1: aggressive buying of Chinese shares here in the shorter term?
Speaker 1: I think the word um, the word to use their
Speaker 1: aggressive is the key modifier. I mean, I wouldn't I
Speaker 1: wouldn't be surprised to see some buying. Um. The prices
Speaker 1: are are so depressed. I mean the c s I
Speaker 1: three is this year after already a bad year the
Speaker 1: previous year. Um. But but the key thing that the
Speaker 1: overhangs in the market, they're all still there. And there's
Speaker 1: no clear path forward on the property market on COVID
Speaker 1: zero and no sign that any of that will change.
Speaker 1: So until we get clarity on that front, UM, that
Speaker 1: word aggressive won't won't happen. We could see some buying
Speaker 1: and and really the important thing for four markets is
Speaker 1: finding a floor right now. Yeah, and maybe they just
Speaker 1: tell people don't sell into it, um, you know, so
Speaker 1: it may not be that aggressive on the buying. But
Speaker 1: if you don't have sellers to taking advantage of the
Speaker 1: better prices, we could see some games. Okay, thanks very much, Sophia.
Speaker 1: Always fun, always interesting, and always something to learn, Sophia
Speaker 1: or to cost. Bloomberg, Chief China Markets correspondent. This is
Speaker 1: Bloomberg