'The low growth rate is a long-term trend for the future.' He expects government stimulus to only support specific industries, such as high-end technology, manufacturing and renewable energy. 'If all businesses do so, growth will not be as fast, quality will be better,' Chang Li, director of corporate ratings at S & P, said in Mandarin translated by CNBC. They're also cutting down on debt – and paying more attention to cash flow, according to S & P Global Ratings.

If 'spending is low, the economy does badly.' The result of ongoing uncertainty is companies in China are pulling back on hiring and future investments. If confidence is weak, spending is low,' said Michael Pettis, a finance professor at Peking University. 'If the economy does badly, confidence is weak. And it could just as easily bounce back in a virtuous cycle. That could send the economy spiraling down in a vicious cycle. Today's problem, which China has acknowledged, is a lack of confidence. Exports are falling on global weakness, not something China can control. As for giving more cash to consumers at scale, official statements over the last two years make it clear top leaders still need convincing.

That's what consumers wanted to buy anyway with the money they had, when China ended its Covid measures late last year. With little room for policymakers to act, and geopolitics hovering, a turn to defensive names in health care and insurance may be in order for investors. hikes – and the pressure's on to prevent outflows to the stronger U.S. Boost the faltering real estate market, and the property bubble remains unresolved. If the government sticks to a playbook of infrastructure investment to drive growth, debt problems worsen. Personal Loans for 670 Credit Score or LowerĪ look through China's economy today reveals a few dilemmas, especially for investors trying to gauge future growth. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit

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