China’s unemployment rate increased from 5.2% in July to 5.3% in August. Seriously, young unemployment increased by 18.9%, 17.8% in July and 14.5% in June.
The rising unemployment and ongoing housing crisis weighing the consumer’s spirit, challenging Beijing’s efforts to promote personal consumption. Retail sales rose year-on-year in August 2025 to 3.7% in July and 4.8% in June.
Another set of weak consumption reports may increase doubt about achieving 5% GDP development target of Beijing. However, policy makers may respond with further excitement measures to revive the economy.
Build excitement hopes
Economists of Goldman Sachs have increased the possibilities of People’s Bank of China of China of China to support the economy. Although recent data has raised doubts, some economists have warned that Beijing may be hesitant to add support if the speed of growth appears sufficient to meet the 5% target.
Last week, MPs promised to support and support Beijing’s concerns about the economic approach. CN Wire reported that policy makers will continue to strengthen and increase the implementation of macro policies and roll out the remedies immediately as the situation develops.
According to CN Wire, NDRC of China said:
“China’s economy still faces significant risks and challenges between the hard and complex external environment. Innovative consumer will speed up the adoption of smart equipment and systems in industries by introducing innovative consumer subsidies on the side.
Mainland equity market: Rally at risk?
The mainland equity markets have taken advantage of three strong quarters, despite the recession in Q3.
The expectations of China’s progress, chip development, and further excitement in AI space have removed the spirit. The CSI 300 is 17.94% year-on-by-Tarikh (YTD) and three years high. Meanwhile, the Shanghai Composite Index has upgraded 15.84%, which climbs a 10 -year high.
The mainland-listed stock records remain below high, if the golden week data and excitement support suggests the room for further benefits when it is aligned. However, weak golden week can weight weigh over the data and the absence of fresh stimulation.
In contrast, the Hang Seng index has increased 36% YTD as the Hang Seng Tech Index has increased by 48.8%.
