China’s Stabilisation Drive

Naomi Waistell of FP Carmignac Emerging Markets shares key insights from a May 2025 research trip, highlighting the nuanced reality of China’s stabilisation efforts amid lingering structural headwinds and shifting global trade dynamics.

• Despite policy support, transmission remains weak; deflationary pressures and structural imbalances persist, especially in lower-tier cities and the property sector.

• A two-speed economy is emerging, with strength in manufacturing and innovation-led sectors (e.g. robotics, biotech) contrasting with fragile domestic demand.

• Hong Kong’s equity market shows renewed momentum, driven by local support and a pivot away from US listings.

Is China quietly laying the groundwork for long-term competitiveness? Dive into the report for an in-depth view.