{"id":30063,"date":"2025-08-29T04:25:08","date_gmt":"2025-08-29T04:25:08","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/30063\/"},"modified":"2025-08-29T04:25:08","modified_gmt":"2025-08-29T04:25:08","slug":"chinas-stock-boom-will-not-do-much-to-rejuvenate-the-economy-nomura-says","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/30063\/","title":{"rendered":"China\u2019s stock boom will not do much to rejuvenate the economy, Nomura says"},"content":{"rendered":"

The ongoing rally in Chinese stocks<\/a> will do little to boost growth in the mainland\u2019s economy, as equity investments account for a small portion of total household assets, Nomura Holdings said.<\/p>\n

In a report on Wednesday, Lu Ting, the Japanese brokerage\u2019s chief China economist, said Chinese households parked the majority of their wealth in the struggling property market. Stock holdings accounted for 1.3 per cent of total household assets, while the proportion for properties was 60 per cent, the report said, citing data published by China\u2019s central bank in 2019.<\/p>\n

\u201cChinese households\u2019 assets are still dominated by property, implying a limited wealth effect from rising stock prices,\u201d Lu said.<\/p>\n

Investors who were counting on a bullish stock market to help revive the Chinese economy \u2013 particularly consumer spending after some key July economic data suggested a broad-based slowdown \u2013 were likely to be disappointed, Lu said. In an earlier report, Nomura said China\u2019s growth would deteriorate significantly in the second half, with the effect of a trade-in programme for household appliances fading and high tariffs hurting exports.<\/p>\n

China\u2019s US$12.3 trillion stock market, the world\u2019s second largest, has been on a roll over the past two months, with the Shanghai Composite Index climbing to its highest point in a decade in August amid a rotation out of bank deposits and fixed-income products. While economists including Nomura\u2019s Lu argue that the liquidity-driven boom might be fleeting, some fund managers and the nation\u2019s vast pool of retail traders<\/a> believe the run is sustainable, as more stocks join the rally and support comes from the state.<\/p>\n

Stocks are more significant in other global economies, particularly the US. American households allocated 65 per cent of their assets to financial products, mostly stocks and funds, while about 25 per cent went to real estate, according to official data.<\/p>\n","protected":false},"excerpt":{"rendered":"The ongoing rally in Chinese stocks will do little to boost growth in the mainland\u2019s economy, as equity…\n","protected":false},"author":2,"featured_media":30064,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[174],"tags":[79,381,22804,179,18,19,17,23893,23892,7338,8601,107],"class_list":{"0":"post-30063","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-china","10":"tag-china-stocks","11":"tag-economy","12":"tag-eire","13":"tag-ie","14":"tag-ireland","15":"tag-lu-ting","16":"tag-nomura","17":"tag-property-market","18":"tag-shanghai-composite-index","19":"tag-us"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/30063","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=30063"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/30063\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/30064"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=30063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=30063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=30063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}