China’s economic data suggests potential for recovery

On By Littum

China’s latest economic data indicates upside potential for economic recovery, JPMorgan Asset Management strategist Chaoping Zhu said in a note.

Stronger GDP growth in the fourth quarter was driven by a recovery in both domestic and external demand, Zhu noted.

However, investment activity in the real estate sector and the PBOC’s social finance data reflect continued caution, he added. The stock market’s muted response to the data suggests investors are awaiting further policy clarity after the Chinese New Year, Zhu said.