Home StocksAsia China May Spark Global Rally

Foreign enterprises and international experts believe that China’s optimization of COVID-19 response, which expands the flows of people, will help activate the country’s economic vitality and potential, and bring important benefits to world recovery and growth.

China’s economy maintained average annual growth of around 4.5 percent in the past three years, obviously higher than that of the world.

The Chinese economy has demonstrated strong resilience and huge potential. Last year, facing challenges of high winds and choppy waters in the global environment, the Chinese economy achieved stable growth. China’s grain output exceeded 650 million tons for eight consecutive years, and the task of expanding urban jobs was completed ahead of schedule. Besides, the country for the first time saw its total foreign trade exceed 40 trillion yuan ($5.97 trillion), and maintained the world’s largest trader in goods for six years in a row.

The International Monetary Fund (IMF) said global economies will face a tougher year than the previous 12 months as all major growth engines face weakening activity. However, the organization noted that China will achieve stable economic growth in the new year and become the largest positive factor of the world economy.

IMF Managing Director Kristalina Georgieva believes that the Chinese economy will gradually achieve high-level development and end 2023 on a brighter note.

Multiple financial institutions, including Goldman Sachs, French banking group Societe Generale and Morgan Stanley estimated that China’s economy would see stable recovery in 2023.

HSBC said in a Q1 report that China’s export growth still outran the global trade growth. Swiss investment bank UBS AG said many multinational corporations were expanding their production and investment in China.

In a recent report issued by Rhodium Group, the New York-based advisory firm noted that companies which had already invested billions of dollars in China were still executing their investment plans.

George N. Tzogopoulos, a senior fellow in media, international relations and Chinese affairs at the Hellenic Foundation for European and Foreign Policy, said as China optimized its COVID-19 response, the cross-border flow of people will be significantly expanded.

“Investors will find more development opportunities in the dynamic Chinese market,” he said, adding that helps promote economic growth.

French newspaper Le Monde said on its website that Provence, the Louvre Museum and the La Samaritaine department store are all expecting Chinese tourists to return to France soon.

Harrods, a London luxury department store, recently bought clothing stock designed for a Chinese fit for the first time since 2019.

“We are talking very significant numbers if Chinese tourists return,” said the department store’s managing director Michael Ward, adding that the store would get back old friends that it hasn’t seen in the UK for years.

Singaporean Chinese-language newspaper Lianhe Zaobao said on its website that the market is expecting a sooner rebound of the Chinese economy. According to analysis by the World Bank, every one-percentage growth of China’s GDP will drive the Singaporean GDP to go up 1.2 percentage points. Australian, Thai, Malaysian and Indonesian GDP will also experience growth thanks to the recovery of the Chinese trade sector, the newspaper added.

Alejandra Grindal, senior international economist for Ned Davis Research Group, said China’s optimization of COVID-19 response has lowered the chance of the world GDP growth dropping below 2 percent from 80 percent to 65 percent.

Kiatipong Ariyapruchya, the senior country economist of the World Bank for Thailand, noted that China’s stable economic recovery will become a positive factor driving global recovery.

You may also like


Your Trusted Source for Capital Markets & Related News

© 2023 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.