China's Economy

Has Xi Jinping lost control of the markets?

What’s happening in China is really interesting. If we trust their official figures and estimates, the economy was driven by 3 things:

  1. Real estate (who’s crashing hard)
  2. Consumer spending (who’s in decline, as their population is not growing and aging)
  3. Exports (who are threatened by India and South East Asia)

As 1. is crashing, consumers—who put most of their savings in, guess what, real estate—are more conscious about spending, hurting another good 30% of their economy.

So, 2/3 of their economy is hurting and will hurt more badly in 2024.

The Chinese’s and Hong Kong’s markets are also spooked, having shed USD 1.5 TRN in January alone.

It’s going to be an interesting 2024.