Amid a new batch of stimulus measures and the latest economic data showing a pick up in retail sales and industrial production, China’s economy shows signs of recovery. Against this backdrop, it could be wise to invest in top-rated, fundamentally sound Chinese stocks Alibaba Group Holding Limited (BABA – Get Rating), JD.com, Inc. (JD – Get Rating), and Hello Group Inc. (MOMO – Get Rating) for potential gains.
China’s retail sales and industrial output picked up pace in August with stronger-than-anticipated growth, as per National Bureau of Statistics data. Retail sales rose by 4.6% year-over-year, up from 2.5% in July and exceeding expectations for 3% growth forecast by a Reuters poll.
Industrial production in China increased by 4.5% in August from a year earlier, faster than the 3.7% year-over-year pace in July and better than the 3.9% expected.
The solid industrial production and services output figures indicate Oxford Economics’ third-quarter GDP forecast is intact, and steady economic activity would mean the economy can reach about 5.1% growth in 2023, according to its lead economist, Louise Loo.
The International Monetary Fund (IMF) also sees some signs of stabilization in the Chinese economy after the recent data; however, it believes that the country can grow at a faster pace over the medium term if it takes steps to reform its economy to rebalance from investment toward consumer spending.
Chief spokesperson Julie Kozack said that the IMF still believes China can achieve around 5% growth this year.
Further, China has rolled out new stimulus measures to drive the country’s ailing property market and support a weakening yuan in an attempt to boost the economy.
As per a joint statement by the People’s Bank of China (PBOC) and the National Administration of Financial Regulation (NAFR), the minimum down payments for mortgages will be slashed to 20% for first-time buyers and 30% for second-time buyers. Also…
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