Caixin
Aug 20, 2024 08:31 PM

Analysis: Can China Serve as a Safe Haven Amid Global Stock Turmoil?

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China's economic growth was driven mainly by exports in the first half, leaving it vulnerable to shocks to the global economy.
China's economic growth was driven mainly by exports in the first half, leaving it vulnerable to shocks to the global economy.

Amid signs of a cooling U.S. economy and disappointing corporate earnings, the U.S. stock market began an adjustment in July. Meanwhile, market expectations for Fed rate cuts have increased significantly, pushing down the U.S. 10-year Treasury yield.

Additionally, Japan has begun its rate hike cycle, bringing up the long-depressed yen, but its stock market has tumbled recently. Coupled with uncertainties surrounding the geopolitical situation in the Middle East, global financial markets may experience significant volatility in the coming months.

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