L.Lim
01-20

I am surprised that there was no big article about China's GDP for their 4th quarter and for 2025.

The Q4 gdp has slowed to a 3 year low, further raising questions on whether the government can truly spur local spending as a growth engine. For some time now, China has been struggling to spark their economy into a full roar, due to skepticism among the people. This seems to have stemmed from the botched decision to not open up the country when covid19 was waning, which pushed dissatisfaction and unhappiness into the open. The overall pessimism was further reflected when the chinese government chose to tinker with economic figures, first by announcing it late, then manipulating how certain statistics (like employment figures) would be shown.

While the world experienced inflation (I am still lf the belief that it was man made due to greed of corporatios that wanted to recoup covid19 losses, and not all due to the middle east instability and the rusian invasion, but that is a whole other story), China faced deflation. The government had to constantly try to rally citizens by providing subsidies and vouchers.

The popping of the Chinese property bubble is also a huge factor. The induatry was over-leveraged, believing itself to be too big to fail. Once the government choe to let big companies go under, everything became ugly real quickly. Falling property prices has affected the financial power of households, and therefore affected consumer confidence.

It will be worth keeping an eye out on what China does and whether it will be effective. (Also worth noting is it's expanding trade surplus against the rest of the world.)

💰Stocks to watch today?(4 Feb)
1. What news/movements are worth noting in the market today? Any stocks to watch? 2. What trading opportunities are there? Do you have any plans? 🎁 Make a post here, everyone stands a chance to win Tiger coins!
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment