Market Performance & Investment Sentiment - China's market has outperformed its global peers this year, narrowing the performance gaps with countries like the U.S., Japan, Korea, and Taiwan [1] - Investor sentiment towards China has subtly shifted from super optimistic to a more balanced or neutral stance, though still slightly under-balanced [4] - A disconnect exists between the economy and the market, with investors seeking economic recovery and better earnings to sustain the rally into next year [6] Key Drivers & Surprises - A significant surprise this year was China's technological breakthrough, potentially positioning it better than the U.S. in certain aspects of AI [7][8] - China has demonstrated its leverage and preparedness, alleviating fears of being cut off from the global trade and financial systems [9][10] - Investors have high confidence in policymakers, supply, and liquidity supporting the stock market, making further positive surprises on this front less likely [12] Economic Impact & Policy - A technology breakthrough leading to high-paying jobs is seen as a potential positive surprise, which could fundamentally turn around consumption and stabilize the property market [12][13] - More decisive and forceful policy in addressing overcapacity issues would be welcomed by the market [14] - The wealth effect from the stock market rebound is not expected to be significant, as much of household wealth remains locked in the property market [16][17] Valuation & Earnings - Valuations are getting stretched not only for China but even more so for other Asian markets, especially Northeast Asian markets [21] - The market is hoping to see an earnings turnaround as a key driver for future growth [20][21] - Even with a stock market recovery, a K-shaped consumption pattern is anticipated, benefiting wealthier households while mass market consumption remains depressed [22][23]

China is selling large volumes of soybeans from its state reserves, as it steps up purchases from the US to fulfill an apparent agreement between the two countries in late October. https://t.co/9yvut3xez9 ...

China’s markets shed the “uninvestable” tag this year. To bury it for good, investors say an acceleration in the domestic economy is needed so the bullishness doesn’t fizzle out. https://t.co/nUKAWyzY31 ...

China has displaced Germany in the top ten of a new global ranking—and the Swiss are on a roll https://t.co/XvMFLheHgx ...

China’s policymakers have been relying on unexpectedly strong exports to keep growth on track. That could prove to be a mistake https://t.co/J7OKz9xxot ...

A “terrifying” new era of warfare is forcing America to rethink its tools and tactics as it prepares for great-power conflict with China https://t.co/vXH5yyYIAx ...

China’s inbuilt tendency to overreach could flare up in several ways in 2026. We explain why in The World Ahead https://t.co/wo0Ma41uRc ...

Canada is mulling how to re-engage with China. There is room for growth when it comes to trade: it takes only about 4% of Canada’s exports currently. But America will complicate matters https://t.co/enVQI2Uihb ...

Rare Earth Minerals & Export Controls - The conversation about rare earth minerals has been significantly impacted by China [1] - Europe is getting closer to obtaining a general license from China, similar to the United States [1] Communication & Licensing - Close contact is maintained with China's foreign trade minister and team [2] - A team from China specializing in export controls visited recently [2] - Initial reports from the industry suggest that general licenses are being obtained [2] - The Chinese side was receptive to arguments that the processes set up in April required too much intrusive information [2] - General licensing could be a solution to address the issue of overly intrusive information requirements [2]

China has displaced Germany in the top ten of a new global ranking—and the Swiss are on a roll https://t.co/YX0aUw1oKp ...