China's Economy Gets a 'Lil Bit' Better? Tariffs Take a Chill Pill!

Uh Oh Trade War? More Like Trade...*Warmth*?

Okay so like remember when everyone was freaking out about the trade war between the U.S. and China? Turns out they decided to take a 'lil break! President Trump and China agreed to a 90 day truce which basically means they're chilling on the tariffs for a bit. It's like when you're arguing with your sibling and Mom's like 'Time out!' Except instead of video games it's billions of dollars...same difference right? The original reciprocal tariffs introduced by Trump in April which were like a super effective 'no u' move had banks panicking and downgrading China's growth forecasts. Now? Well let's just say things are looking a 'lil' brighter. It's not the end of the world guys!

GDP Growth: From 'OMEGALUL' to 'PogChamp'?

UBS is now saying China's GDP might actually CLIMB to between 3.7% and 4% in 2025. Like what? They previously thought it'd be around 3.4%. That's a whole .6% of extra stonks! Morgan Stanley is also feeling the good vibes thinking companies might try to rush exports to take advantage of the lower tariffs. It's like when your favorite streamer announces a limited time merch drop... gotta get that hoodie before it's gone forever! They're even hinting that China's second quarter GDP could be higher than expected. Maybe this isn't a 'rip bozo' moment after all.

Banks Be Like: 'Oops We Were Wrong!'

ANZ Bank is now seeing potential for China's GDP to exceed 4.2% this year. Remember when they were all doom and gloom back in April? Classic. Natixis is also jumping on the optimism train bumping up their GDP growth forecast to 4.5%. It's like when I accidentally spill water on my setup and then realize it's still working. Phew! Close call! They're hoping for more proactive stimulus and tariff reductions. More savings means more PC upgrades right? Poggers!

Stocks Go BRRRR: China's Equity Market Gets a Boost!

Nomura is feeling so good about China they've raised their China equities to "tactical Overweight." They even took some funds out of India to invest in China. It's like when I switch from Valorant to League because my friends are online. Gotta go where the action is! Citi has also raised its target for the Hang Seng Index expecting it to hit 26,000 by the first half of 2026. That's a lot of potential stonks for China's investors! But don't go spending all your money on new gaming gear just yet...

Cautious Optimism: 'It's a Trap!'... Or Is It?

Okay okay everyone pump the brakes. Citi's China equity strategist Pierre Lau is still cautious preferring domestic plays that avoid tariff uncertainties. He's upgraded the consumer sector though and sees promise in the internet and tech sectors. It's like when I'm trying a new game... excited but also expecting bugs. Maybank's chief investment officer Eddy Loh sees opportunities in communication services and consumer discretionary sectors. Just remember what Dan Wang said it could be a temporary pause not a breakthrough in the bilateral relationship.

The Trump Card: Will He Tilt the Table?

Eurasia's China director Dan Wang is reminding everyone that this whole tariff reduction thing is temporary. Like seriously temporary. She also thinks Trump who loves tariffs as much as I love headbands might not keep them low for long. “This is a temporary pause not a breakthrough in the bilateral relationship. A 90 day truce is short in trade diplomacy,” she said. So yeah don't go all in on China just yet. It could all change faster than my streaming schedule. Remember be careful stay safe and don't get baited! It's all about being a well informed streamer so stay tuned for more updates fam!