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Chinese Economic Concerns Heighten Amid Market Struggles
2024-10-17 05:40:09
China
Economy
Markets

Chinese Economic Concerns Heighten Amid Market Struggles

Image courtesy of : AFP (SPENCER PLATT)

Chinese stocks are experiencing declines, primarily due to a lack of effective support for the struggling property sector. Recent briefings from government officials, including the housing minister and finance representatives, highlighted ongoing challenges within the economy.

Analysts anticipate disappointing GDP figures for the third quarter, raising urgent calls for substantial stimulus measures. The focus has shifted toward enhancing consumer incomes and spending to foster sustainable growth, rather than solely meeting short-term targets.

As retail investors remain cautious, there is an increasing sentiment that the time for decisive economic action is running out.

Related news on that topic:

China's Market Recovery Amid Economic Challenges

China's stock markets are experiencing a rebound following government commitments to bolster the economy. In response to growing economic weakness and deflation, officials have promised increased borrowing and eased regulations to support the private sector. Despite these measures, consumer confidence remains low, reflecting lingering pandemic effects. Goldman Sachs has responded by raising its growth forecasts for China, citing new fiscal and monetary initiatives. However, analysts warn that underlying structural issues, such as demographic shifts and real estate challenges, may hinder sustained recovery. As the government prepares to implement significant fiscal spending, the effectiveness of these strategies will be closely monitored by investors and regulators alike.

China's Strategic Economic Stimulus Plan

China is launching a substantial economic stimulus package to counteract sluggish growth and support low-income earners. This ambitious initiative involves an additional six trillion yuan in debt to bolster state-owned banks and address regional government debt issues. The Chinese government aims for a 5% growth target in 2024 and 2025, despite forecasts predicting a slight shortfall. With public debt soaring to 116% of GDP, local governments face significant financial burdens, leading to weaker investments. In response, China plans to enhance liquidity and cut interest rates. These efforts are expected to stimulate economic activities and offset the pressures of deflation and diminishing exports. While analysts place China's growth at 4.8% in 2024, missing the 5% target, there is optimism that the stimulus measures will boost economic performance. As the People's Bank of China pursues aggressive monetary policies, including rate reductions, the government is also exploring structural changes to ensure long-term sustainability. Ultimately, China's strategic efforts reflect a determined bid to revitalize its economy while navigating complex domestic and international challenges.

Read 14 more recent news on this topic

The press radar on this topic:

China Economy - South China Morning Post
17. Oktober 2024 um 00:00

China’s GDP set to underperform in third quarter, adds to urgency for more stimulus

Economy
Politics
Finance
China's upcoming third quarter GDP data is expected to disappoint, underperforming the previous quarter's 4.7% growth and adding to pressure on Beijing to introduce more stimulus measures in the world's second-largest economy. Analysts say the window for such steps is closing, and urge the government to reorient stimulus towards boosting incomes, spending and sentiment for long-term growth, rather than just ensuring this year's growth target is met. Chen Zhiwu, chair professor of finance at the..
Property - South China Morning Post
17. Oktober 2024 um 01:46

China’s housing minister holds briefing as property sector drags economy

Finance
Economy
Politics
This live blog serves as a public service. China’s housing minister Ni Hong holds a press briefing in Beijing, attended by officials from the People’s Bank of China, Ministry of Finance, and National Financial Regulatory Administration. This briefing follows a Ministry of Finance press conference on Saturday. More from our coverage: – Chinese economist calls for massive stimulus, saying 2008’s 4 trillion yuan not enough – China looks to tackle problems for debt-ridden local authorities with wa..
Yahoo Finance
17. Oktober 2024 um 07:45

Chinese Stock Gains Fizzle as Briefing Lacks Major Stimulus

Finance
Economy
Chinese stocks fell as property market support fails to revive market, evoking past false dawns and concerns over delayed market revival.
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