What a difference per year.
In early 2024, China was struggling with slow recovery after birth, thanks Weak consumptioncontinuous Fears about propertyAnd the continuation of waste from a Organizational In the technology sector in China.
Pearls were reflected in the stock markets: lists in Hong Kong, the traditional canal of Chinese companies looking for foreign capital, which they had Dried up Amid organizational audit. The Hang Singh Index, the city’s repression index, has just achieved The fourth year in a row of losses.
Feelings today are very different. During the huge event week, which is called Hong Kong-series of successive conferences, which directs the Art Basel and the Champions Cearch Championship-Hong Kong CEOs, the main righteousness of China, the United States, and the United States, and so far away that they always know that China and Hong Kong will return.
The Hang Seng index increased by approximately 20 % for the year, compared to a 3 % decrease in S&P 500 and a 5.8 % decrease in Nikkei 225 in Japan. Two numbers marches. Wall Street Upgrade its goals On China’s shares, quoting more positive policy signals than Beijing and the possibility of new innovations after Deepseek.
“It is definitely investment,” said Jenny Johnson, CEO of Franklin Timbelton, referring to the second largest economy in the world.
The changing novel is “Equivalent,” said Friedrich Newman, chief economist in Asia in HSBC, said, said ” luck On Thursday, during an interview with a gift at the UK Bank Conference. “There is more optimism and attention in China.”
Bony Chan, CEO of Hong Kong Exchandes and Percing, which is Manage the city exchangeDistress about the shift in feelings at the HSBC event on Tuesday. She said: “Just one year ago, many international investors clarified the Chinese shares that are not investing, but their outlook changed in September, and many of them began to increase their investments in Hong Kong and China.”
Hong Kong Stock Exchange He Now the subscriptions are attracted From Chinese companies. This week, Catl Tesl I got official approval To raise $ 5 billion through the public subscription in the Chinese city. It will be the largest list in the city since 2021.
Dibsic shock
It can be said that the arrows gathering in China started with Version From the cheap, strong and effective artificial intelligence model in late January, which was wiped About a trillion dollars The value of American technical stocks – he added about The same amount In Chinese technical stocks.
“Dibsic was a snapshot in its arm for those looking to see confidence,” Kevin Senider, President of Goldman Sachs, President of the Asia Pacific Region, said at Milkin World Seminar on Monday.
Soon after investing investors invest the capabilities seminar With President Xi Jinping, along with other major executives such as the founder of Trent Pony MA and the founder of Huawei Ren Zhengfei. Snier said on Monday that the “handshake” meeting was a clear indication that Beijing was ready to embrace the private sector. “Trust seems to have returned,” he said.
After Dibsic, international investors state that the technology sector in China has the ability to innovate.
Clara Chan, CEO of Hong Kong Investment, said on Tuesday that international investors, including in the United States, are now interested in the technology sector in China. She added that many people now want to use Hong Kong as a launch launch of this investment, and they work with local institutions.
Did China finally turn a corner of consumption?
Less confident than if Beijing is ready to do more to increase the rest of the economy.
Since September, officials have promised more motivation to encourage local consumption, which has been marked since the end of the street epidemic. Officials again Repeat their engine To enhance consumption after “two sessions” last month.
However, there is a lot of ground to cover. In the Milkin event on Monday, economist Kio Jin noted that consumption represents only 38 % of GDP in China, “very low compared to the most advanced economies.” She noted that there are still “hundreds of millions of people in rural areas” without appropriate access to health care, education and social security compared to the residents of urban areas.
But financial companies may take a long -term look of things. “It is really difficult to bet against any country of 1.4 billion people,” Ali Depadge, CEO of Janus Henderson Investors, told HSBC on Thursday. “(China) has a very successful history, a lot of innovation, a lot of motivation, and most importantly, many incentives established by the government.”
Neumann said from HSBC luck While “no one expects a miracle from China this year”, there is a vision of a “gradual” transformation in Beijing’s approach to consumption. Investors believe, “There is a structural transformation that occurs in China, which may take several years – but there is definitely something happening.”
Not everyone is convinced, but. The former Chairman of the Murghan Stanley Asia Stephen Roche Khattab Beijing refused to be “more slogans than objective procedures” in an interview with Bloomberg Thursday.
What about the United States?
Optimism about markets such as China and Europe is offset by pessimism in the concerns of American tariffs, inflation and weakness of consumer morale, and has led to a decrease in American stock markets this year.
“The largest individual risk factor in the governor of most people is American technology,” Aaron Costilo, President of Asia at Cambridge Associated, told the Milkin conference on Monday. Stocks at “Seven Magnificent” in this year for this year so far; Nafidia below More than 20 %, while Tesla below More than 30 %.
The Trump administration also strikes feelings with the background of definitions. On Monday, the US President suggested that the customs tariff may not be the same Strong as he was afraid. After a few days, this optimism ended by slapping a A 25 % new tax on auto importsAnd Another tariff of 25 % On any country that imports oil from Venezuela.
Investors are now waiting on April 2, when the Trump administration reveals a full set of new definitions on the basis of the country.
“Globalization as we knew that it might have been managed now,” said HSBC Chairman Mark Taker on Tuesday as he opened the Hong Kong conference in his bank. “What was sustainable is no longer.”
This story was originally shown on Fortune.com
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