Insights

Macro Insights Weekly - China after the NPC

11 March 2024
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  • China’s challenges are counteracting an adverse economic cycle and geopolitical headwinds while carrying out structural reforms. Property sector and local govt funding stress are critical to resolve.
  • After a pivotal NPC, ambitious growth and inflation targets have been set.
  • The burden of support would come from monetary/financial policies and local governments.
  • But many local governments are saddled with heavy debt that need restructuring urgently.
  • Also, short of property sector restructuring, consumer and investor sentiment would remain poor.
  • Trade, tourism, and mobility data from spring festival, both during and after, hold promise.

 

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