Chinese economy continued its recovery in May as all activity indicators improved from April, although the pace was slower than expected. The People’s Bank of China (PBOC) did not think it was problematic as it kept policy rate unchanged for the second straight month.
China’s Hainan province announced a free trade port reform plan, the biggest market liberalization experiment by Xi’s administration by far.
China rates have jumped significantly from the bottom as the PBOC stopped cutting policy rates and the economy continued to recover.
It is unlikely for Washington to end its other “special treatments” for Hong Kong because it hurts the Americans even more.
The latest move is consistent with Beijing’s hardline stance in response to the political turmoil on the island since 2019.
China’s A-share listed firms suffered significantly at the beginning of 2020 because of the COVID-19 pandemic.
