Outlook for China's economy and stock market 2024: Wooden dragon brings positive energies and opportunities

Outlook for China's economy and stock market 2024: Wooden dragon brings positive energies and opportunities

According to a report by www.cmcmarkets.com, the year 2024 in the Chinese calendar is marked by the wooden dragon, which symbolizes power, strength and energy. After a year full of economic disappointments, China's economy and stock market need exactly these qualities.

China has achieved its growth target of five percent, but growth is well below the double-digit figures of previous decades. Political tensions between China and Taiwan have increased, unsettling international investors and leading to capital outflows from China. Due to the uncertain economic outlook in China, foreign companies have withdrawn their profits instead of investing.

China's demographic development poses a further risk, as the population is shrinking and the proportion of the elderly population is increasing. Unemployment has risen since the coronavirus pandemic and the Chinese government has stopped releasing data, raising concerns about the country's true economic situation.

Despite these challenges, there is a chance for the Chinese stock market to make a comeback. The political tensions would be costly for everyone involved, but they could also stabilize the economic situation and the stock market in China.

Investors should therefore not write off the Chinese stock market yet as it is cheaply valued compared to others. Against the background of an economic slowdown in the USA and Europe, stocks from the Middle Kingdom could be a good alternative in 2024.