China’s economy continues to show mixed short-term trends. Consumption remains weak, with social media retail sales rising by 2.7% in July and the consumer price index up 0.5% on an annual basis (y/y). This is underlined Jasmine Kang, Comgest Growth China fund manager at Comgest explaining that “the real estate market is still in difficultyà, but used home sales volumes showed signs of stabilization after the recent measures adopted. Meanwhile, industrial production grew by 5.1% y/y, while total exports and imports rose by 6.5% y/y in July”.
innovation drives long-term competitiveness
Trip.com posted positive results for the second quarter of 2024, with revenue and operating profit increasing 14% and 19% year-on-year, respectively. Outbound travel and international tourism are important growth drivers. Anta Sports rebounded during the month, with revenue and operating profit both increasing 14% year-on-year in the first half of 2024.
The company also announced a HK$10 billion share buyback plan over the next 18 months. The stock Fuyao rose following revenue growth of 23% y/y and operating profit of 24% y/y in the first half of 2024, with volume and average selling prices exceeding expectations.
China and GDP, the expectations
In our opinion – concludes the expert – “thein China can still achieve its GDP growth target of around 5% for the 2024. We believe government stimulus policies will become increasingly effective as their urgency grows. Continued advances in technological innovation and industrial redevelopment fuel our optimism about the long-term competitiveness of the economy. Geopolitical news will continue to remain front and center as we approach the U.S. election.”
