The current Chinese economic environment
Mainland Chinese stock markets registered a significant decline for the second consecutive day, raising concerns among investors regarding the effectiveness of the recent economic stimulus measures adopted by Beijing. Despite an increase in retail sales, which exceeded expectations with an increase of 4.8% compared to the previous year, the general economic situation remains uncertain
.
Industrial production and real estate crisis
Another worrying fact is represented by industrial production, which showed a disappointing growth of 5.3%, lower than the forecasts of analysts who expected an increase of 5.6%.
This scenario is aggravated by the crisis in the real estate sector, which saw a 10.3% drop in investments in the January-October period, worsening compared to the 10.1% drop recorded in the first nine months of the year. These data highlight a fragility of the Chinese economy, which could have long-term repercussions
.
Trend of market indices
At the index level, the situation is just as worrying. The Shanghai composite index fell by 1.45%, closing at 3,330.73 points, while Shenzhen fell by 2.62%, closing at 10,748.97 points. The Shanghai Shenzhen CSI 300 index also declined, falling by 1.75% to 3,968.83 points.
In contrast, the Hong Kong Hang Seng Index closed almost unchanged, with a decrease of 0.05% to 19,426 points, while the Hang Seng China Enterprises Index gained 0.1%.
These data suggest general caution among investors, who find themselves having to navigate a context of economic and political uncertainties. The current situation requires a careful analysis of the economic measures adopted and their real implications on the
market.
