However, cost savings cannot translate in an increase in domestic consumption. Retail sales increased in May, 6.4% yoy, but weak consumer Bhavna continued to challenge Beijing’s push for strong domestic demand compared to 5.1% in April. Weak spirit highlights China’s economy to American tariffs and weak foreign demand, pressurizing Beijing to start fresh stimulation.
Alicia Garcia Herero also commented on China’s economy and possible excitement exercises, stating:
“China will probably continue its fiscal leadership stimulation to encourage growth, but it will not be enough to unbalance the economy towards consumption as focus is a infrastructure. Regenerating the economy towards consumption requires a lead and further interest rates to take forward interest rates. An important concern is that the further worry can weaken the ramm Can reduce. “
On 24 June, Huang Yipping, advisor to the People’s Bank of China, reportedly stated that China’s Q2 GDP growth would exceed 5%. Huang Yipping also sees the room for further fiscal policy expansion. China’s National People’s Congress Standing Committee was called on 24 June. The news from China’s apex legislature may include plans to advance the transition towards a consumption -led economy in Beijing’s plans.
Despite the trade uncertainty, Hong Kong and the mainland China conducts monthly benefits
Hong Kong and the mainland China-list stocks climbed in June, expanding their benefits from May. The US-China trade stress and the Iran-Israel Charmah break has promoted the demand for risk property. However, the main indexes remain below the high level of March, with uncertainty about the US-China trade deal.
In June, the mainland CSI 300 and Shanghai Composite Index of China were up to 1.55%and 2.03%respectively, while Hang Seng Index increased by 3.70%.
The advantage of June has reduced the year-on-year (YTD) deficit 0.89%for the CSI 300, while Shanghai Composite has increased by 1.90%. Meanwhile, the Hang Seng index has increased 20.40% YTD, which has increased by the demand for technical shares. The Hang Seng Tech Index was 18.76% YTD, despite the US sanctions on technology -related exports, performs better than the Nasdaq Composite Index (YTD: +1.66%).
Further progress towards a business deal may demand mainland and HK-list shares. However, addressing China’s dependence on domestic demand and US tech may be important for long -term trends.
