China: Tailwinds persist despite trade turbulence

CHINESE equities entered 2025 with positive momentum.

- BRIAN ARCESE

Years of policy overhangs were finally beginning to lift. The combination of renewed stimulus, stabilising property markets, and a tech-sector rebound had markets pricing in a turning point. That optimism was tested in March, when the United States imposed sweeping new tariffs on Chinese imports — with Beijing responding in kind. The tariff war rattled sentiment. But despite the trade war escalation, Foord remains cautiously optimistic.

The Chinese policy stance has turned meaningfully pro-growth. Since September 2024, the Chinese government has rolled out significant fiscal and monetary support for the world’s second largest economy. The first quarter of 2025 saw record government bond issuance, targeted rate cuts, and renewed infrastructure investment — all designed to offset persistent domestic weakness and the growing drag from global demand uncertainty.