China uncertainty

Synopsis

In this morning note, the uncertainty surrounding China is highlighted, particularly with President Jinping's unusual absence from public life for over a week. This situation raises concerns about the government's economic intentions, especially regarding Chinese Economic Policy. Speculation about a new stimulus has emerged, positively impacting global stock markets. However, the difficulty in interpreting China's economic data complicates the understanding of these developments. James King, principal of the FT's China research service, discusses the impact of worries about China on world stock markets, noting that European stocks exposed to China have underperformed compared to American stocks. Despite recent announcements of significant investment projects by the Chinese government, local banks remain hesitant to lend due to rising non-performing loans. Nevertheless, some investment activity is beginning to show signs of improvement across building sites in China.