March 26, 2025
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China’s 2025 Growth Target Gets Boost From Morgan Stanley, AI Optimism Rises

Morgan Stanley Raises China’s 2025 GDP Forecast to 4.5% As Beijing Makes Fresh Pledges to Step Up Fiscal Stimulus Efforts.”, – WRITE: www.fxempire.com

FX Empire – China Unemployment Rate Youth Unemployment Painted A Gloomier Picture, Climbing To 16.9% In February, Up From 16.1% in January.

Ai Crucial for Long-Term Growth Prospects Meanwhile, Improving Business Sentiment May Aid Job Creation and Revive Consumer Confidentnce, Potentilly Driving Consumption. Alibaba Group (09988.hk) Chairman Joe Tsai Boosted Heps of Falling Unemployment on March 25, Reportedly Saying:

“Clear Signs of Business Entrepreneurs Being More Confident Since January, Since President XI Met with Private Businesses. Company Plans to Re-Start Hiring After Reaching Bottom of Bot.

Tsai’s Comments Highlight China’s Advansements in AI, A Potentilly Long-Term Growth Driver. Echoing this, Bank of England Governor Andrew Bailey Emphasized Ai’s Transformational Economic Potential, Stating:

“We must facilitate the growth of ai as the most likeli general purpose technology WHICH CAN MOVE THE NEEDLE ON GROWTH IN THE ECONOMY.”

Hang Seng Index OutperForms Mainland China’s Equity Markets Ai Optimism Has Helped Propel the Hang Seng Index, WHICH HAS GAINED 16.69% YEAR-TO-DATE (YTD) DESPITE A PULLBACK FROM A MARCH 19 THREE-YEAR HIGH. In Contrast, The CSI 300 is Flat, and the Shanghai Composite Index is up Just 0.61%.

Tech giants alibaba (09988.hk) and Baidu (09888.hk) have Contributed to Hang Seng’s Gains, with Ytd Returns of 56.92% and 11.85%, Respectvely.

Brian Tycangco, Editor/Analyst at Stansberry Research, Dismissed Conceerns Over Fading Stimulus and China’s Market Outlook:

“Some Are Saying China’s Bull Market is in the Danger of Economer of Economic of Riskauuse of Risks That Stimulus Will DisappPoint. Well, I Don’T’T’T THINK SO. PBOC HAS PBOC More Sensitive to Market Developments Tese Days than they wre 5 to 10 years ago. ”

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