The market sentiment has greatly improved, though details of China's recently-unveiled stimulus plans are yet to be disclosed, Hubertus Vaeth, managing director of Frankfurt Main Finance, said in a program of China Global Television Network (CGTN) that was broadcast on Wednesday.
China recently unveiled a broad stimulus plan to tackle challenges facing the country's economy. Following the stimulus package, China's stock market went up and the consumer market thrived over the National Day holiday season on October 1-7.
China's National Development and Reform Commission (NDRC) -- the country's top economic planner -- held a press briefing on the stimulus package on Tuesday, but not disclosing details of the stimulus plans.
Commenting on this development, Vaeth said that while the specifics of the policies are yet to be further refined and implemented, the market has already keenly picked up on positive signals, resulting in a significant improvement in market expectations.
"I think it's not a negative that not all policy details have been hammered out. The direction is right. The market clearly smelled that there is a massive impetus coming, and the fine tuning will leave it to the time, leave it to seeing how they -- the market -- response, how the actions of the participant in the market are. So I think this period where we see more details is a period of fine tuning. It is not changing direction. The direction is set right and and it's been a strong impetus. So I'm not worried about there is not clarity about all measures yet. China has been underweight, tremendously underweight," said Vaeth.
Vaeth also expressed the belief that the Chinese stock market will witness a lasting rebound and that the Chinese economy still holds boundless potential.
"We will have a long relay to come if things go right. What do I mean by that? There is a saying in the markets, that says, the market climbs a wall of fear, and they still figure out there. Because of that, the market climb has a long way to go, and to establish the trust, and filter these measurements down, and to stay that course on the impetus of the measurements. That is what needs to be done. And I read from what I hear coming out of China as that it's been clearly understood and it's meant to happen," said Vaeth.
China sees market sentiment improving, with stimulus plan in right direction: expert
