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
...August 14, 2023 | Chinese inflation dips negative, and with sluggish producer prices, could be hinting it stays that way.
Why It Matters: China is the heartbeat of global manufacturing, and a decline in prices will have ripple effects for prices globally.
...June 12 2023 | Three massive emerging market economies are in disinflationary mode: China, India, and Brazil. Why It Matters: A continuing slowing pace of inflation could be good news for stocks as they react more to changes in inflation rather than its actual level. Source: Gavekal
...April 24 2023| Despite luxury brands creating enhanced production, the real driver is the Chinese consumer’s resurgence. Why It Matters: A revived Chinese consumer base can greatly influence the global economy, boosting growth and trade. Source: thedailyshot
...February 20, 2023| Retail sales saw an unexpected boost this week, but the increase in credit card debt to finance spending will likely pose a long-term concern. We need to keep an eye on this risk, despite the near-term boost an increase in spending will provide. Source: thedailyshot
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