As communist China turns 75 can Xi fix its economy?

Published On Oct 3, 2024, 7:17 PM

China announced a series of stimulus measures aiming to boost its struggling economy as it celebrated the 75th anniversary of the People's Republic. This includes support for the property sector, cash handouts for poorer citizens, and measures to stabilize the stock market, resulting in significant gains in Chinese stocks. However, economists express skepticism about the effectiveness of these measures, noting that deeper structural issues must be addressed for sustainable economic growth. The current tactics may merely provide temporary relief without resolving the underlying confidence crisis in the economy.

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Stock Forecasts

FXIView FXI chart on TradingView

Positive

With the China's stock rally driven by recent stimulus measures, there is potential for further growth in the short term. However, the underlying economic issues remain a concern, and long-term stability will depend on how effectively these measures restore confidence and address deeper problems.

KWEBView KWEB chart on TradingView

Negative

The ongoing challenges in the Chinese economy, particularly in the property market, could weigh on the concerted efforts for growth. If the fiscal measures fall short or fail to significantly change market dynamics, a corrective pullback could be expected.

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