{"id":268240,"date":"2025-07-17T03:08:14","date_gmt":"2025-07-17T03:08:14","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/268240\/"},"modified":"2025-07-17T03:08:14","modified_gmt":"2025-07-17T03:08:14","slug":"how-is-the-chinese-economy-doing-and-whats-next-for-its-markets","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/268240\/","title":{"rendered":"How is the Chinese economy doing, and what’s next for its markets?"},"content":{"rendered":"

Right
\nnow, most of the world’s attention is focused on the United States, and
\nunderstandably so. From Trump’s trade wars to attempts to replace Jerome
\nPowell’s refusal to lower interest rates, geopolitical tensions, and with a new
\nearnings season just kicking off and affecting
\nthe S&P 500<\/a>, there is no shortage of headlines.<\/p>\n

However,
\nthe world is not just about the United States. Interesting developments are
\nalso taking place elsewhere, especially in China. And no, we’re not just
\ntalking about toy maker Pop Mart, which expects its revenue to rise by at least
\n200% and its net profit by 350% year-on-year in the first half of the year.<\/p>\n

The real
\nstory is that the Chinese economy continues to hold up. According to data
\nreleased Tuesday, the country’s GDP grew 5.2% year-on-year in the second
\nquarter, a slight slowdown from 5.4% in the first quarter, but still above
\nexpectations of 5.1%. In short, there is no fall off the cliff because of trade
\nwars.<\/p>\n

What
\nkeeps things afloat?<\/p>\n

Mainly
\nexports. Amid trade
\ntensions<\/a>, U.S. importers had been stockpiling Chinese goods, but
\nthat boost is quickly fading. As exports to the U.S. and EU decline, overall
\nexport activity will likely weaken in the second half of the year. This could
\nfurther slow China’s GDP growth, making it even harder to hit the 5% full-year
\ntarget.<\/p>\n

To
\noffset the possible drop in exports, China will need to boost domestic
\nconsumption, which remains weak. The consumer savings rate remains high. Option
\nB would be to increase economic stimulus, something investors have been waiting
\nfor months and which has not yet arrived.<\/p>\n

So, what
\ncould we expect from the Chinese market?<\/p>\n

The CSI
\n300 continental benchmark index reflects investors’ concerns about growing
\ngeopolitical risks, not only with the United States, but also with Europe,
\nwhich recently accused China of having \u201cthe largest trade surplus in human
\nhistory.\u201d No wonder Xi Jinping decided not to attend the upcoming EU-China
\nsummit.<\/p>\n

At the
\nsame time, concerns about deflation persist in China. In June, consumer
\ninflation was just +0.1% year-on-year, while producer prices fell by 3.6%.
\nThese figures, combined with persistently weak consumer confidence and the
\ncontinued decline in house prices, put additional pressure on sentiment.<\/p>\n

Meanwhile,
\nHong Kong’s stock market is performing relatively well. Investors are showing
\nrenewed enthusiasm for technology companies such as Alibaba and Tencent, which
\nare listed in Hong Kong and are not subject to the same domestic pressures. DeepSeek’s launch<\/a> further
\nboosted its recent gains.<\/p>\n

Later this year,
\n ForexLive.com<\/b><\/a>
\n is evolving into
\n investingLive.com<\/b><\/a>, a new destination for intelligent market updates and smarter
\n decision-making for investors and traders alike.<\/p>\n","protected":false},"excerpt":{"rendered":"Right now, most of the world’s attention is focused on the United States, and understandably so. From Trump’s…\n","protected":false},"author":2,"featured_media":268241,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[51,1700,16,15],"class_list":{"0":"post-268240","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-uk","11":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114866376152993040","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/268240","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=268240"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/268240\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/268241"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=268240"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=268240"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=268240"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}