Market concerns about the scale of China’s economic recovery post-reopening are likely to be overblown.
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Commercial NEVs could become the fastest growing segment in the next three years while the passenger market sees slower growth and increased competition.
Corporate loans accounted for the bulk of new credit, but it is unclear how the loans are being used; households have remained reluctant to add leverage.
Demand and time deposits show excess savings, but a consumption comeback is primarily linked to spending a higher share of income.
While consumption held back growth in 2022, it promises to be a key driver in 2023, as households shift to spending more due to the normalization of daily life after zero-Covid.
Manufacturing and construction firms may face structural labor shortages due to reliance on migrant workers who are retiring and increasingly travel-averse.
We address some major questions for China in 2023, including China’s Covid transition, economic recovery, the new head of government, and the outlook for US-China relations.
The communique from the Central Economic Work Conference contained friendly words for the private sector and platform companies.
The PBOC has resorted to using structural monetary policy tools to more directly encourage banks to lend, but the impact will not be felt for some time.
The October economic data is awful, but the market is looking forward rather than back, and this could be the beginning of the end for zero-Covid.