China's stimulus measures are a 'mini bazooka': Strategist
China stocks are getting a boost after the People's Bank of China (PBOC) unveiled new stimulus measures for its struggling economy. KraneShare senior investment strategist Anthony Sassine joins Market Domination to discuss the move and how it may impact the Chinese consumer. "This is a great step in the right direction. We've been waiting for this for many months. We talked a lot about bazooka approach because we kind of thought that the economy needed a big push, and we got something similar today that we can call maybe a mini bazooka, where you kind of see rates cut across the board from repo 14, 21, seven days. Also, mortgages and also the required reserve ratios as well. So this kind of tells you that the Chinese government is really looking to boost growth here before year-end," Sassine tells Yahoo Finance. He notes the move has caused "a little bit of panic," which is why China stocks are getting a lift in Tuesday's trading session. Sassine expects China to unveil more stimulus measures in the coming months, as well as initiate another interest rate cut. In addition, he would like to see the government roll out demand stimulus, like sending money directly to consumers to help them recover. While some investors are concerned about regulation, he believes the stimulus measures are a "very good signal" to finally take the leap into the market. "The government is looking finally to make a big impact... You're going to see a pop here... upward momentum for the next few months. But investors are going to be looking at earnings, which are going to be coming up soon. There's also the Singles' Day in November, which is also going to be very telling to see if the consumer is responding, if we're going to see that rally continue," he adds. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Melanie Riehl
