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<p>CICC's Liu Gang analyzed the impact of the Federal Reserve's interest rate cuts on the Chinese market, pointing out that although the market generally believes that rate cuts are beneficial for China, the actual situation may be the opposite. He mentioned that rate cuts do not necessarily lead to a weakening of U.S. Treasury yields and the dollar, as historical experience does not always apply. In previous rate cut cycles, U.S. Treasury yields and the dollar index were often at high points when rate cuts began, and instead rose during the rate cut period</p>

- As expectations rise for a Federal Reserve rate cut in September, discussions about its potential impacts, particularly on the Chinese market, have intensified.  
- While many investors assume that a rate cut will generally benefit the Chinese market, historical patterns suggest that the relationship between rate cuts, U.S. Treasury yields, and the dollar is more complex and may not lead to the anticipated outcomes.  
- Ultimately, the short-term effects of a rate cut may be positive, but these benefits could quickly reverse as economic conditions improve, highlighting the importance of understanding the underlying economic context.

CICC Liu Gang: Is the Federal Reserve's interest rate cut really a good thing for the Chinese market?