February 19, 2024 | Chinese investors are divesting from overseas investments, notably in Commercial Real Estate (CRE).
Why It Matters: Forced sales could worsen the plight in CRE, where occupancy and rents are declining. It also poses risks to regional banks heavily exposed to CRE.
Source: SoberLook
...January 22, 2024 | Chinese Gross Domestic Product growth slowed to +5.2%, the lowest since 1976 (excluding Covid). It also faces a housing crisis with prices falling in ~90% of cities.
Why It Matters: China’s issues can send global ripples impacting everything from supply chains to international investments.
Source: SoberLook
...January 15, 2024 | China overtook Japan to become the world’s largest exporter of cars.
Why It Matters: The shift not only highlights China’s dominant role, but also signals a reshaping of the automotive market, where the impact is likely to be felt first in the European Union.
Source: Gavekal
...November 20, 2023 | Presidents Xi and Biden met this week, aiming to reduce tension after years of rising strains.
Why It Matters: Rebuilding this relationship is key. The U.S. needs consensus on geopolitical issues in Ukraine and Israel, while China aims to revive its slowing economy. Source: SoberLook
...August 21, 2023 | Rising worries in China = more savings, despite the low mortgage rates; and a historic drop in mortgages.
Why It Matters: The residential property sector is uniquely vital to China’s economy, and boosting consumer confidence to spend is pivotal for its recovery.
Source: Gavekal, thedailyshot
...August 21, 2023 | Another China property developer teeters, fueling default fears. In response, China cuts interest rates, sending China’s currency to their lowest since 2008.
Why It Matters: China’s woes are a growing global concern. If China takes a dive, the world may feel the splash.
Source: thedailyshot
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