In addition to the current events in China and developments related to the corona virus, some positive news about the country’s economy has almost disappeared in recent weeks. Weaker growth was expected, and in fact the Chinese economy was not growing as rapidly as it was a few years ago. However, the figures at the end of 2019 were surprising in that expectations were exceeded in many areas. China’s economy also created a positive mood worldwide. Today we present three analyzes.
Chinese economy sends positive signals
Folker Hellmeyer, chief analyst at Solvecon Invest GmbH, analyzes the current figures from China:
China as the world’s largest economy (based on purchasing power parity) has set unexpected positive accents in the past 24 hours.
Contrary to all expectations, sporting exports increased by 7.6% as of December in a year-on-year comparison (highest value since March 2019). The forecast was only 3.2%. The hunger for imports was striking, almost massive. Here there was an increase of 16.3% (forecast 9.6%) and thus the highest value since October 2018.
We do not want to hang a month’s date too high here, but this data can be interpreted as an encouragement that the endogenous economic forces remain unchanged in the structurally strong countries (see outlook for 2020 SOLVECON-INVEST) despite the US-based aggressions against countries and Institutions.
The second part of the positive news around China came from Washington. China does not manipulate the currency market according to the US definition in order to gain advantages over the USA.
The third part of the positive news concerns the positive expectations regarding the upcoming signing of the first partial agreement within the framework of the USA / China trade deal.
Read the whole article here: Link.
China data makes Dax soar
Robert Zach has examined the influence of the growth of the Chinese economy on the DAX and notes:
The unexpectedly solid economic data from China also put investors in a good mood. At 6.00 percent, the gross domestic product in the final quarter met the expectations of economists. Both industrial production and retail sales surprised at 6.9 percent and 8.0 percent year-on-year, and fixed investment was also strong.
„The China data are in line with the picture of an economy that has bottomed out,“ said Christin Tuxen, chief analyst at Danske Bank (CSE: DANSKE) in a morning note.
For more information and analysis, click here: Link.
There is no way around China for investors
Due to the positive developments in China and the resulting positive global mood, it is clear that investors and companies have to deal with China. This is also the conclusion reached by Robert Landgraf for the Handelsblatt:
China offers itself as an investment country in the search for attractive returns on equities and bonds. Chinese company securities belong in every securities account. […] More and more stocks and bonds are included in global indices. China’s weight in the mood barometer is increasing. Many investors worldwide follow their investment policy. The yuan exchange rate also showed more stability.
The whole article is available here: Link.