​EBC Markets Briefing | China stocks slip; gold may hit $5,000

Stock markets slid in Asia on Monday in the wake of EU-US flare-up. China A50 index remained week after some of the ETFs heavily owned by the so-called national team saw record outflows.

The shift may hint at official attempts to rein in a rally driven by AI enthusiasm and earnings optimism, which came a day after regulators unexpectedly tightened margin financing.

Meanwhile, Shanghai Futures Exchange reportedly has ordered brokers to get equipment for high-speed clients out by the end of next month, in an attempt to ensure market stability.

China's economic growth slowed to its weakest pace in nearly three years in Q4 as domestic demand softened, though full-year growth matched Beijing's target despite higher US tariffs.

Consumer inflation accelerated to 0.8% in December, the fastest pace in nearly three years, while producer prices dropped 1.9%. The PBoC lowered rates on structural policy tools by 25 bps last week.

Local households are scouring for higher-yielding investments as roughly $7 trillion in time deposits come due this year. That could provide additional fuel for the nation's financial markets.

The A50 index pushed below both 50 SMA and trendline, a sign of investor fatigue. The base scenario is another leg lower towards 15,000, though the long-term strength seems intact.

Asset recap

As of market close on 16 January, among EBC products, Global X Uranium ETF shares led gain. After finishing 2025 on a relatively calm note, uranium is beginning to attract renewed attention in early 2026.

IBM approaches its Q4 earnings report, where it is set to detail its outlook for 2026 in software, consulting, and demand linked to generative AI. Vice chairman Gary Cohn said he was not expecting a sudden AI takeover.

"Resource nationalism" could propel gold to $5,000 and silver to $100 this year, analysts say. Trump threated to impose fresh tariffs on eight European countries opposed to his proposed takeover of Greenland.

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