PDD Holdings (PDD), aka Temu has big institution buying and volume is coming in huge. Volume very strong. Anyone shorting will be swept away by the tsunami wave . This is power buying.
China has announced it is increasing minimum wages which should boost productivity. China already has a reputation of being hard working.
Chinese people have high saving rate, so it should not be inflationary.
Paying higher wages will stimulate the economy. Some of the benefits include low turnover and staff retention. Employee morale goes up while employee sickness goes down, staff turnover is hugely expensive: not just the downtime of the production line but obviously also the training costs: even the search costs to find them. It can indeed be cheaper to pay workers more but to reduce the turnover of them and those associated training costs.
Modify on 2025-01-18 03:19
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