How the USA and China compare – assessments from a financial expert

How the USA and China compare – assessments from a financial expert

According to a report by www.bondguide.de,

In terms of growth and inflation, the USA performed significantly better than expected in the summer - especially than China recently. The US experienced nominal growth of 40%, representing the third largest nominal expansion since the end of World War II. In contrast, the increase in the ten years since 2009 was only 13%. So this increase over the last three and a half years represents a significant increase, largely due to fiscal policy. These nominal values ​​are critical to company results, particularly when determining earnings, and are a key factor in why U.S. stocks perform well.

As for China, there is cause for concern as the signs at the data and payments level have been very worrying over the last six weeks or so. The possible default of the Country Garden bond is bringing concerns about China back into the focus of the market. Zhongrong has created some weaknesses in the shadow banking sector, raising concerns that a disruption in this area could have repercussions for the entire banking sector. Fixed investment was also subdued and economic growth was generally lower than expected. Despite selective political measures, there are still concerns.

As a financial expert, I see that these developments could potentially have an impact on the market. Weakness in China and signs of slowing economic growth could affect investor confidence in the Asian market and potentially globally. It is possible that investors will withdraw from equity portfolios and invest more in money market funds because the returns there represent a more attractive alternative. Uncertainty in the global economy may lead to a more cautious approach by investors and impact capital flows.

It is important to continue to monitor developments in China and analyze their potential impact on the financial sector in order to respond appropriately.