The Chinese economy slowed again in November, due to the deterioration of the real estate market and the trend of the pandemic which held back consumer spending. The indicators of industrial production, the real estate market, infrastructure and trade were negative. The Chinese stock exchanges feel the blow even after the announcement that the US Treasury has extended the list of Chinese companies on the black list because they are connected to Defense. A revival of monetary and stimulus policy is needed to restore momentum to the economy and growth.
Negative indicators affect the lists
Chinese equity markets closed lower with the Shanghai Blue Chip Index down 0.38% to 3,647.63 points. The Shenzhen index lost 0.73% to 15,026.21 points. The point is that China’s economy took a hit last month from an ongoing housing slump and new Covid outbreaks, prompting economists to warn that recent easing measures may not be enough to stabilize. growth.
The United States also plans to include eight other Chinese companies on the investment blacklist, including the global commercial drone giant DJI for alleged involvement in surveillance of the Uyghur Muslim minority in Xinjiang. Another blow to the prospects of the Chinese economy in global equilibrium.
The weight of real estate and Covid-19
Sales of residential properties and the area set aside for new homes fell by about 20% compared to the previous year, lowering the pace of overall investment spending in the economy.
Retail sales growth weakened to 3.9% in November as people stayed home to avoid contagion. The data highlights the challenge Beijing faces as it seeks to stabilize the world‘s second largest economy without giving up its campaign to reduce debt levels in the vast real estate sector.