From a macroeconomic aspect, as we have analyzed, China has managed to overcome the effects of the pandemic and with the support of both the Government and the central bank is moving at full speed towards the fulfillment of its economic goals.
However, the continuing tension between the government and the technological giants is putting a strain on investors as these companies are not limited to the technological sector but have a strong presence in other sectors and especially in the financial sector.
Substantially, what the Chinese government is trying to build is a framework to protect the wider financial sector and prevent situations like the ones we have encountered in recent years.
Chinese treasuries: Are they a new stability board?
In the last month, rising returns in almost every country in the world have created a slight upheaval in portfolios as the rate of rise has been sharp.
According to Bloomberg, during this period, Chinese bonds proved to be the most stable as their rise did not exceed 0.07% when US bonds rose 0.44%. The following graph is indicative.