Chinese Markets Weather Iran War Turmoil Better Than Asian Peers

Group 1 - Chinese markets have shown resilience during the global market selloff, with onshore stocks declining around 1% compared to over 6% in other Asian markets [1] - The yuan experienced the smallest drop against the dollar among major Asian currencies, while Chinese sovereign bonds outperformed major peers [1][2] - Chinese assets are viewed as a stable option for global investors seeking diversification amid geopolitical risks, supported by policy continuity and economic support from the Chinese government [2][4] Group 2 - China's 10-year government bond yield fell by approximately two basis points to 1.79%, contrasting with a roughly 20 basis points rise in US Treasury yields [5] - The onshore yuan slipped about 0.6%, outperforming other Asian currencies like the South Korean won and Philippine peso, which both dropped more than 2% [5] - Continued demand for Chinese stocks has been noted, driven by policy support from Beijing, even as foreign investors withdrew from other regional markets [6] Group 3 - Premier Li Qiang emphasized stability and higher-quality growth in his address, pledging to extend fiscal support and maintain an accommodative monetary stance [7]