“US Tariffs Loom As China Shifts Focus to Domestic Demand, Boosting Consumption and Investment.”, – WRITE: www.fxempire.com
- FIRST-TIER CITIES REPORT HIGher Home Prices.
- Second and Third-TIER CITIES SEE MODEST DECLINES IN HOME PRICES.
- Annual Price Drop Narrows Across All City Tiers.
However, East Asia Econ Remarked On the House Market Data and the NEED FOR FURTHER RATE CUTS, STATING:
“Deflation Easted in January, But Only Slightly. That’s no surprise, Given Mortgage Lending Also Remoned Weak Last Month. The Sluggishness is personspite despite Low Rates, and the Failure of Rate Cuts to Revive the Quintessentially Rate Sensitive Sector Remains A Standout Feature of this Cycle. ”
US Tariffs and China’s Shift to Domestic Demand While Rising Credit Demand and House Price Trends May Provide Market Relief, Domestic Consumption Remains Crucial to China’s Economic Outlook.
On February 19, Beijing Announced Plans to Boost Demand for Autos, Electronics, and Home Products.
Brian Tycangco Considired Consumption Upgrades as Stimulus, ALIGNING WITH BEIJING’S RECENT SHIFT SHIFT TOWARD CONSUMPTION-DRIVEN GROWTH.
In December, Beijing Pledged Stimulus Measures to Boost ConSumption and Broader Domestic Demand. People’s Bank of China Governor Pan Gongheng Reinforced This Stance, Stating:
“The Priority of Macroeconomic Policy Should Shift from Promoting More Investment in the Past, to Promoting Both Consumption and Investment, WitH More Importance Attacked To Consumption.
A successful transition to a consumption-Driven Economy Could Help Mitigate The Risks of A Prolonged US-CCHINA Trade War.
Natixis Asia Pacific Chief Economist Alicia Garcia Herrero Emphasized the URGENT NEED FOR A Transition, Saying:
“The Only Way Out for China is to Produce Less. It Will Be Very Painful. Nobody Is Going to Take Your Products Forever. SO IT’S JUST A CHOICE: If You Want To Create More Welfare, More Growth, Ten You Need To Consume More. ”
Still, A Breakthrogh in Trade Negotias Could Provide an Additional Boost. On February 19, President Trump Suggested that A New US-CHINA TRADE DEAL REMAINS POSSIBLE DESPITE The RECENT TIT-FOR-FOR-TAT Tariffs Maneuvers.
Market Trends: Mainland China Equities in the Red Amid Surging AI-Linked Stocks, Mainland China’s Markets Remain Under Pressure Amid Tariff Uncertainties. While Suggesting A US-CHINA Trade Deal Is Feasible, Trump AnnounCed Sweeping Tariffs on Autos, Semiconductor Chips, and Pharmaceuticals on February 18, Effective As Early AS EARLY AS EARLY AS EARLY AS EARLY AS EARLY AS EARLY
Year-to-Date Performances of Key Mainland China and Hong Kong Indices:
- CSI 300: -0.29%.
- Shanghai Composite Index: -0.19%.
- Hang Seng Index +12.65%.
The Hang Seng Index Has OutPerForMED ITS MAINLAND PEERS, DRIVEN by Strong Gains in Ai-Linked Stocks. Alibaba (9988) Leads The Charge, Soaring 45.87% This Year.