Fynsa
The Chinese government has set a GDP growth target of between 4.5% and 5% for 2026, the lowest in more than three decades. The decision reflects a more challenging economic environment and marks a strategic shift toward more moderate growth, focused on strengthening domestic consumption, driving technological innovation, and improving the resilience of the economic model.
China's technology sector has seen a year-to-date rally of more than 39%, nearly double that of the Nasdaq 100 in the US, and we believe that its strategic drive toward technological self-sufficiency and innovation is laying the foundation for this growth to continue.
As we and the market anticipated, the Central Bank Board unanimously decided at its October meeting to cut the monetary policy interest rate by 25 basis points, bringing it to 5.25%.
The slowdown in the Chinese economy and geopolitical tensions are leading companies to withdraw more money than they invest in the Asian giant.
Both nations are adopting strategies to manage complex interdependence, seeking a balance between cooperation and competition while reducing their vulnerabilities.
China is seeking a change of course in its development model.
After a few years of volatility, a more stable market is expected in 2024.
The outlook for the Chinese economy is worrying, but the Asian giant has cards up its sleeve: savings and technological development capacity.
The problems of the Chinese economy go beyond slow growth or the need for stimulus.
