The action “supports our view that there won’t be a sharp deceleration in the Chinese economy this year and that fears of a major global slowdown are overdone,” Geoffrey Yu, head of the UK Investment Office at UBS Wealth Management, told the Financial Times.

The stimulus measures came after Beijing said government officials will on Monday hold their first formal trade talks with the U.S. since the world’s two largest economies came to a tentative ceasefire in the trade war.

“From a stock market perspective, with a lot of negative news already priced in, we could realistically hope that the absence of further negatives may at least lead to some stabilisation in equity prices,” Colin Morton, a portfolio manager at Franklin Templeton Investments, told the Financial Times.

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