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The Market Response to the China Reopening
The market response to rate cutting measures and stimulus talk has been lethargic./nSingle stocks in the property sector like Country Garden and Long For saw upside of 3% each on the day./nIn a recent episode of Market Depth about the property sector index price action, the index and development indices were up 4% and almost 10% respectively./nThe lack of response in the market is due to short covering rather than the opening of new long positions./nExpected rate cuts by the PBOC are already priced into the markets and will not be a surprise./nPolicy easing measures can signal a shift in policy regime, but only time will tell if it comes to fruition.