China
Economic Stabilization Creates Opportunities
The Chinese stock market continues to appear moderately valued by historical standards and, in particular, relative to the U.S. stock market. Numerous established companies in the technology, consumer, and industrial sectors are still trading at a discount. Key risks include, in particular, geopolitical tensions, the ongoing weakness in the real estate sector, and a potential slowdown in global trade. For international investors, a differentiated assessment of individual companies and sectors therefore remains crucial.
The Chinese economy continues to grow at a moderate pace. Government stimulus measures, accommodative monetary policy, and ongoing investment in technology, infrastructure, and industrial capacity are providing a boost to economic growth. At the same time, structural weaknesses in the real estate sector and subdued consumer demand remain significant headwinds for economic development.
One positive development worth noting is the persistently low inflation rate. This gives the Chinese central bank additional leeway to support the economy through favorable financing conditions. As a result, Chinese monetary policy remains growth-oriented by international standards. The environment in the foreign exchange market has also stabilized recently. Although the renminbi has depreciated against the U.S. dollar over the past few years, it has recently shown greater resilience.
Should the Chinese domestic economy continue to stabilize, this could support the stock market and create room for a revaluation of individual companies in the medium term. Supportive monetary policy, additional fiscal measures, and the recently more stable currency environment are providing tailwinds in this regard.
IMF Economic Forecasts
GDP 2026: 4.60%
Inflation 2026: 1.20%
Shibor: 1.36%
As of: September 29, 2026