The deep seated challenges behind the modest rise in China s stock market amid global easing expecta

Mondo Finance Updated on 2024-01-31

In recent global economic developments, China** has shown a slight pace with the global market**. On December 14, China's major stock indexes, the blue-chip CSI 300 Index and the Shanghai Composite Index, both achieved 03% growth. At the same time, Hong Kong's Hang Seng Index and Hang Seng China Enterprises Index each increased by 11% and 07%。There was also a general trend in Asia as a whole on Thursday morning.

It is worth noting that despite its global growth, China** still underperforms the MSCI index in the Asia-Pacific region (excluding Japan), which has a decline of 18%。This reflects investors' concerns about the slow recovery of China's economy. In addition, China's new bank lending grew less than expected in November, despite continued easing by ** banks to support the weak recovery of the economy. Goldman Sachs said in a note that the credit and currency data for November were slightly disappointing, and the composition of credit and lending data continued to show weak credit demand.

Goldman Sachs also noted that China is expected to continue to implement further monetary policy easing measures, including further reductions in the reserve requirement ratio and policy rate, given deflationary pressures, softening credit demand and weak market sentiment.

This financial news not only reveals the current moderate trend in China, but also exposes the deep-seated challenges facing China's economy. First, despite the widespread easing expectations in global markets, China**'s performance has not fully followed this trend, reflecting concerns among domestic and foreign investors about China's ability to sustain economic growth. Second, weaker-than-expected credit data could mean that China's domestic demand remains weak, posing a potential risk to the future economic recovery.

Against the backdrop of global economic uncertainty, the future trend of China** will be affected by many factors. Domestic investors and corporates need to pay close attention to global market dynamics and policy adjustments by Chinese ** banks to better respond to market changes and economic challenges. In addition, for international investors who are concerned about the Chinese market, understanding the deep-seated issues of the Chinese economy will help them make more informed investment decisions.

All in all, this round of moderation in China not only reflects the impact of global easing, but also an important indicator of the challenges facing China's economy. In the future, China's development will be a key factor in measuring the strength of China's economic recovery.

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