|
Economy
|
Challenges Persist in China's Economic Recovery
2024-08-15 09:00:08
Economy
China
Business

Challenges Persist in China's Economic Recovery

Image used under license from Shutterstock.com

China faces a sluggish economic recovery marked by slowing industrial output, retail sales, and investment growth, compounded by rising unemployment. Exports decline, bank loans contract for the first time in 19 years, and both state-owned and private enterprises see stagnant investment.

Despite government efforts and pledges to boost consumption, the shift to new growth drivers proves challenging. Meanwhile, China's real estate sector struggles despite state support, notably with a 14-month decline in home prices.

The UK, on the other hand, sees growth but faces hurdles like a dip in consumer spending due to a cost of living crisis and unfavorable weather conditions, hindering its economic momentum.

Related news on that topic:

China's Bond Market Struggles Amidst Economic Uncertainty

China's bond market is facing challenges as the country's economy shows signs of weakening. Concerns over a potential 'balance sheet' recession similar to Japan's 'lost decades' have arisen as bank loans contract and demand weakens. The weakening demand is evident in the plunge in corporate borrowing, household debt repayment, real estate collapse, core inflation drop, sluggish retail sales, and contraction in services activity. The People's Bank of China (PBOC) has intervened in the market to address stagnation concerns, but bond yields remain at record lows. Despite the similarities with Japan, differences such as the debt-to-GDP ratio and the absence of significant liability contraction suggest China's situation may not be as severe. However, China's bond market still faces challenges from bond vigilantes and a potential bubble, prompting the PBOC to tighten control.

Chinese Stock Trading Suffers Amid Faltering Investor Confidence

China's stock market faces a 4-year low in trading volume, indicating waning investor trust. The Shanghai and Shenzhen bourses witness a significant drop to 496 billion yuan, marking the lowest turnover compared to market capitalization since 2019. Issues like a housing crisis and a bond rally further undermine confidence. Regulators express concern over the soaring demand for government bonds, while the market heads towards a fourth consecutive year of losses. Meanwhile, Chinese authorities intervene in the bond market to mitigate risks, impacting rural banks in Jiangxi province. Hong Kong stocks lag behind regional recovery, with Meituan and Li Auto leading losses.

Read 11 more recent news on this topic

The press radar on this topic:

China Economy - South China Morning Post
15. August 2024 um 02:00

China’s economic activity continues to drag in July as key indicators miss expectations | South China Morning Post

Politics
Economy
Finance
China's economy struggles in July, with weak retail sales, property investment, industrial output, credit demand, and a rising urban unemployment rate. The government has taken steps to boost the economy, including special treasury bonds and a consumer goods programme, but concerns remain about the overall economic momentum, including trade barriers and a 4.7% growth rate in Q2.
Property - South China Morning Post
15. August 2024 um 04:25

China’s July home prices fall at a slower pace as state support shows ‘some effect’ | South China Morning Post

Finance
Politics
Economy
China's home prices fell for 14th month; authorities issued measures to revive property sector, including 300 billion yuan relending facility; Shenzhen joined initiative; Shanghai saw month-on-month growth; China's economy expanded 4.7% in Q2, while consumption grew 2.7% in July; in tier-one cities, new home prices dropped in Beijing, Guangzhou, and Shenzhen; China's top 100 developers reported 37.5% decline in home sales; analyst Yan Yuejin said policy support is showing some effect, and local..
Yahoo!
15. August 2024 um 02:25

China’s Uneven Recovery Lingers as Factories Outrun Consumption

Economy
Politics
Finance
China's uneven economic recovery lingers, with industrial output, retail sales, and investment growth all slowing. Unemployment rises, while the real estate slump and government's rescue efforts have limited impact. Exports are weakening, and the first contraction in bank loans to the real economy in 19 years adds to concerns. Investment by state-owned enterprises and private firms is also stagnating. The government's annual growth target and recent Politburo meeting pledges to shift focus to..
The Guardian
15. August 2024 um 12:33

UK economy continues recovery from recession with GDP growth of 0.6%

Economy
Politics
Finance
UK economy grew 0.6% in Q2 2024, led by service sector, but consumer spending fell due to cost of living crisis and poor weather; high interest rates and low productivity limit momentum; new government targets growth to boost living standards and repair public finances; CBI sees subdued underlying activity, with weaker demand for physical goods; growth comes after a lacklustre economic performance over the past decade.
CW

Account

Waiting list for the personalized area


Welcome!

InfoBud.ai

infobud.ai is an AI-driven news aggregator that simplifies global news, offering customizable feeds in all languages for tailored insights into tech, finance, politics, and more. It provides precise, relevant news updates, overcoming conventional search tool limitations. Due to the diversity of news sources, it provides precise and relevant news updates, focusing entirely on the facts without influencing opinion. Read moreExpand

Spotlighting today's most mentioned stocks in the media. Uncover the stories making waves in the stock market:

A closer look at the individuals who are leading today's news narratives. Find out what makes them the center of attention.

Exploring the five locations receiving the most media attention in the last 24 hours. Discover what puts these places in the global spotlight

Your World, Tailored News: Navigate The News Jungle With AI-Powered Precision!

News

All News
Politics
Technology
Economy
Business
Climate

About

About Us
Team + Mission

Legal

Cookie Settings
Disclaimer
Legal Notice
Data Privacy

Contact

Contact