Expert for Arabic: These are the reasons for the divergence of the performance indicators of the Chinese economy

The chief investment strategist at Kraneshares, Anthony Sassin, said that the economic indicators announced from China are not encouraging and affect the stock market, and these declines reflect the negative factors and concerns related to the Chinese economy.

He added, in an interview with Al-Arabiya, that the Chinese economy may witness a greater decline in the near term, explaining that the purchasing index was somewhat slow, especially in terms of industry.

He said, “We see that the Chinese economy is recovering, but not at the required speed, and the last two years things were difficult and the economy received a shock, and consumer spending was affected as a result of the closures due to Covid 19, and the crisis of regulations for technology companies.

He stated that the Chinese economy is recovering, and the first quarter of 2023 was better than the fourth quarter of 2022, and expectations indicate that the second quarter of this year will be better than the previous one, and the improvement can continue better in the third and fourth quarters of this year.

He pointed to problems in trade relations between America and China, which will affect prices, in addition to the problem of real estate, which China does not want to use to contribute to driving growth at the present time, because it is trying a method other than the one it used to activate the economy by relying on the Internet economy or the digital economy to help in Employment, wage increases, and the return of consumers to the markets as soon as possible.

He explained that the Chinese indices send a message to the Beijing government to approve an incentive package in terms of reducing interest and increasing the liquidity available to the markets, and expecting the government to move soon, not in terms of the real estate sector, but through supporting consumers and the digital economy.

It was mentioned that the announcement of the Chinese Alibaba Group to increase the number of jobs it has by about 15,000 jobs during 2023 is very important, given the existence of an employment problem in China, especially for young people, explaining that the graduates of the years 2018-2023 go to about 30% of them to work in what is known as the Internet economy, and after The last two years witnessed fluctuations in the market in these rates, and it is expected that the government will move in this field in the near term.

He said that the visit of Elon Musk, founder and president of the American company Tesla, to manufacture electric cars, to China is very important to Tesla shareholders, as it indicates that businessmen show China that companies need stability in the political situation between America and China.

He referred to the need of American companies to China because it is a large market for them, and they also need America because it is a large source of capital for these companies, and therefore the visit is very important, and Elon Musk always thinks in the long term and discusses China’s policies, especially since the past year was difficult on electric cars because of high interest rates, supply chains, and a price war with competitors in China.

He pointed out that Musk’s visit to China confirms Tesla’s continued presence in China and his intention to expand, and he also wants to know what is required from the Chinese government, especially in the short term.

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