Market Radar 14. August 2023


Focus on China and Adipositas

Stock market participants turn their backs on the Chinese stock market again

Let’s start today with China, because economic data and news came out of that country in week 32 that shook up the stock market so much that we saw a direct impact of this data on stock prices. A correlation between the real economy and share prices is usually delayed because share prices usually anticipate what is happening in the real economy. In this case, however, one can probably say that data from the real economy moved stock prices quite directly.

At a meeting of the Politburo on July 24, the Chinese leadership had called for support measures to boost domestic consumption. That wasn’t really anything new. But unlike before, this time concrete goals for these measures were mentioned.

On Monday, August 7, the political leadership under party leader Xi Jinping finally called on domestic business journalists to refrain from making negative comments on the Chinese economy in the coming weeks. Presumably, the Chinese leadership already knew what negative trade data would be in store for the Chinese economy in week 32. However, Xi Jinping could not prevent the publication of this data.

Read the full report in german