Goldman Sachs: This time is different

"The Chinese stock market is so cheap, the investment limit may double"

Tepper said in an interview with CNBC on Thursday,

"I thought the Fed's move last week would lead to China's loosening of monetary policy, but I didn't expect the policy they issued to be so strong. I think this is a comprehensive shift, so we hold more Chinese stocks. We’re overweight some Chinese stocks, and I may have said in the past that I wouldn’t go beyond a 10% or 15% position, but that’s probably not true anymore.”

Why surprise for most of investor? I have summarized our policy package

On September 24

- Pan Gongsheng, governor of the People's Bank of China, said that the deposit reserve ratio will be lowered by 0.5 percentage points in the near future, providing about 1 trillion yuan of long-term liquidity to the financial market, and it may be lowered by another 0.25-0.5 percentage points before the end of the year.

- The central bank's policy interest rate will be lowered, and the 7-day reverse repurchase operation rate will be lowered by 0.2 percentage points.

- Lower the interest rate on existing mortgage loans, with an average reduction of about 0.5 percentage points.

- Securities, funds and insurance companies will be swapped to support eligible securities, funds and insurance companies to obtain liquidity from the central bank through asset pledge.

On September 26

Fiscal policy and a larger national debt

On September 27

The reserve requirement ratio and interest rate cuts were rarely implemented on the same day, with the reserve requirement ratio cut by 0.5 percentage points and the interest rate cut by 20 basis points! The 20 basis point cut in the policy rate was the largest in nearly four years.