China marketing another potential trigger for equity consumer expenses
Monday’s Housing Sector Policy Adjustment promoted investor spirit, which was another important piece of puzzle.
Prominent economist Hao Hong recently commented on the possible impact of China equity market recovery on the consumer spirit, saying:
“There is no quick improvement to enhance domestic confidence except stock market rebounds. This is a subject that we are discussing in door meetings closed in economists Beijing.”
On Monday, August 25, the CSI 300 extended the streak of its victory, which increased to a three -year high. Meanwhile, the Shanghai Composite Index reached a 10 -year high, potentially promoted consumer spirit. However, Hao Hong warned that retail participation is measured, unlike the rally of last September.
Nevertheless, Beijing’s efforts to increase the housing sector and broad economy can lead to retail participation.
CN Wire said:
“Analysts say that the absence of retail enthusiasm at China’s stock rally may give more stability to the market, even Shanghai Composite hit the height of a decade. The 10-day instability of the CSI 300 index remains near this year’s climb, unlike the previous policy survivors, suggested the measured status by investors.”
The latest policy measures for the stock market rallies of the mainland are expected
Beijing’s latest housing sector policy adjustment aligned with market expectations of a ramp-up of government policy assistance, raising the mainland-list shares.
Last week, China’s chief Lee Kiang promised to promote expenses, stabilize the housing market and address the labor market strains. Beyond the housing area, unemployment is a significant concern. Young unemployment increased from 14.5% in June to 17.8% in July, the highest in 11 months. The national unemployment rate sits at 5.2%.
Economists hope that China’s economy loses pace
Natix Asia Pacific Chief Economist Alicia Garcia Herero recently commented on the need for more government support and said:
“China can reach its 2025 development target, but with even more stimulation and the second half will be difficult. All, while the Chinese economy is more likely to meet the government’s development target, there are significant uncertainty below the road. Despite moving from business friction and maintaining decomposition, there is more bullets for the government needed.”
Coby letter commented on China’s economy, underlining the need for policy support and said:
“China’s economy is slowing down. Fixed -estate investment growth in the first 7 months of 2025 slowed down by 1.6%, the weakest in more than 5 years. The weakest in the weakening investment -12.0% declined -12.0%, the biggest decline with a lower epidemic of 2020. The fastest rate from November.”
Credit demand also deteriorated, exposing Beijing’s challenge to revive consumption, and pay attention:
“In July, for the first time in 20 years, there was an increase in the new loans in the yuan-managed.”
Mainlands reach high stimulation stake
On Tuesday, August 26, the CSI 300 of the mainland China and the Shanghai Composite Index falls at 0.30% and 0.18% to risk the four -day winning streak. Despite the loss of the morning season, the index is close to the high level of the previous season.
Despite killing multi-age high, both index trading well under their all-time peaks, indicating a potential room for an extended bull run.
- CSI 300: +9.41% in August, +13.25% ytd.
- Shanghai Composite: +8.47% in August, +15.62% ytd.
- Hang Seng Index: +28.6% YTD, mainland both equity markets and NASDAQ ( +11.07% YTD) better.
Business headlines and next stimulation measures of Beijing are important. However, American-China trade tension and increase in policy support may derail the rally.