Consumption – in search of an elusive recovery

Chinese household consumption just isn’t growing like it used to – and may never reach pre-pandemic growth rates. Given Beijing’s stated desire to reorientate the economy, focusing on domestic consumption as a key driver of growth, this isn’t good news.
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On our radar: A friend in Xi

In this note, you’ll find the highest priority meetings, market developments, and regulatory actions we’ll be watching for over the next month. The exec sum is listed directly below, followed by individual breakdowns of each item.
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August macro picture: A false dawn?

August’s econ numbers surprised to the upside. Growth in fixed-asset investment, industrial value-added output, and retail sales accelerated last month. Alongside this, China also saw an improvement in the urban unemployment rate.
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RMB depreciation: Manageable – for now

The mighty USD and the prospect of further rate rises in the US have triggered a worrying slide in the value of the RMB against the greenback. This depreciation has come against the backdrop of an exodus of foreign capital out of China as overseas entities dump Chinese securities.
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