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Buying Into China Stimulus Is 'Painful Trade,' Lombard Odier Says


Published on 2024-11-27 20:41:00 - Thomas Matters, WOPRAI
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  • While China's stimulus blitz delivered initial euphoria to the nation's $10 trillion stock market, for Lombard Odier's Asia investment chief it's what happened after that has him on edge.

Lombard Odier Asset Management has advised investors to be cautious about betting on China's economic stimulus measures, describing it as a "painful trade." Despite the Chinese government's efforts to boost the economy through various stimulus packages, the asset manager highlights the persistent challenges such as high debt levels, property market woes, and geopolitical tensions. They argue that while there might be short-term gains, the long-term outlook remains uncertain due to structural issues within the Chinese economy. The firm suggests that investors should look for more diversified and less risky opportunities elsewhere, emphasizing the need for a strategic approach rather than chasing immediate stimulus-driven returns.

Read the Full Bloomberg L.P. Article at [ https://www.bloomberg.com/news/articles/2024-11-27/lombard-odier-says-buying-into-china-stimulus-is-painful-trade ]

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