The announced approval of a $1.5 Bn currency swap from China could in the near term drive the equity market sharply up from the current levels. As such it is recommend holding off any selling at current levels and look for an exit opportunity at a higher ASPI level post such an uptick.
While it is not our base macro assumption, if you have reason to believe that China (or other bilateral partners) will continue to provide financial support well beyond the US$ 1.5 bn that is now in the news and this would sustain into 2022 as well, and have a strong conviction of it, such an alternative view is very supportive of a longer-term bullish case for equities. Investors with such a view on bilateral funding support could look to buy heavily into the market.
The above is quoted by a recent research report published by Frontier Research
Good Luck