China’s Q4 Growth Outpaces 5% Growth Target; Hang Seng and AUD/USD Respond

More information in our economic calendar Expert Perspectives on China’s Economic Strategy Experts are debating whether China’s stimulus measures can effectively transition the economy from its reliance on exports to a consumption-driven model. Alicia Garcia Herrero, Asia Economist at Natixis, commented,

“Xi Jinping’s ideological opposition to European-style “welfarism” is among the reasons that China is locked into its state-subsidised, export-led industrial model. It’s not so easy to boost domestic demand. They would need to radically change their economic model.”

A shift to a consumption-driven economy could reduce China’s exposure to global shocks and demand trends.

Market Reaction to China’s Economic Data The Hang Seng Index reacted to China’s economic data, rising from 19,472 to a high of 19,582.

On Friday, January 17, the Hang Seng Index was up 0.17% to 19,557. Concerns about the effects of US tariffs on China’s economy capped the early gains.