The Year of the Dragon is shaping up well for China, which, after a period marked by languishing growth and a property crisis, has taken bold steps to revive its economy. At the end of September, just before Golden Week, the government announced an ambitious economic support plan, causing equity markets to jump nearly 25% in a matter of days.
This plan, which stands out for its power and maturity, encompasses monetary, banking, real estate and fiscal components, while recognizing the strategic importance of the stock market. Unlike previous, often ineffective measures, this approach responds directly to today's economic challenges.
The impact of these initiatives is not limited to China. Western markets, particularly in Europe, have also benefited from this dynamic, illustrating the interdependence of the world's economies. However, for China to reap the full benefits of this recovery, structural reforms are essential, not least to address its declining demographics.
We invite you to read the full article written by Alexis Bienvenu, Manager, La Financière de l'Échiquier (LFDE), to discover these issues and prospects in depth
This post was translated from the original French.