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Stimulus Relief: A Temporary Boost or Sustained Growth?
Recent Chinese economic policies, including interest rate cuts and a substantial stimulus package, have sparked positive short-term market reactions, such as a 20% rise in the CSI 300 index. However, while this offers brief relief to investors, the lasting impact on economic growth remains uncertain. The downturn, influenced by self-imposed regulations on tech firms and a sluggish housing market, has led investors to seek opportunities outside of China, benefiting markets like India and Japan. Although there's a potential for a sentiment rebound, skepticism exists regarding the sustainability of these improvements given persistent geopolitical tensions and ongoing economic challenges.