Outlook for China’s First Quarter Macro Data

According to reports, the latest research report from CITIC Securities pointed out that the upcoming macro data for the first quarter is expected to exceed expectations as a whole, and the market’s expectations for fundamentals are constantly being revised. It is expected that the Political Bureau meeting in April will carry out targeted policy hikes in some weak areas of the economy. The economy is moving from a partial recovery to a comprehensive recovery, and there will be no deflation. The improvement of the external geopolitical environment and clear liquidity inflection points will enhance market risk appetite, The A-share market is currently in the second key long window of the year, and the importance of the current financial reporting season performance has significantly increased. The main rotation has begun. It is recommended to continue to avoid pure AI themed speculation and return to the main performance line, cutting high and low between industry sectors and within the digital economy.

CITIC Securities: The economy will not experience deflation

As the world recovers from the effects of the COVID-19 pandemic, China’s economy is showing signs of bouncing back rapidly. In a latest research report, CITIC Securities predicts that the first quarter macro data for China is expected to exceed expectations, and the market is constantly revising its expectations for fundamentals. This article will cover the report’s findings on China’s economic outlook for the first quarter of the year.

A comprehensive recovery, not just a partial one

According to CITIC, the Chinese economy is moving from a partial recovery to a comprehensive recovery, with no signs of deflation. This is great news for China, as a comprehensive recovery means that all sectors of the economy are recovering, not just a few. It’s worth noting that China’s economic recovery is largely due to the country’s success in controlling the spread of the pandemic.

Targeted policy hikes

The Political Bureau meeting in April is expected to carry out targeted policy hikes in some weak areas of the Chinese economy. This means that the government will focus on boosting specific sectors that are struggling, rather than just trying to stimulate the economy as a whole. This approach is expected to lead to more sustainable growth in the long run.

Improved external geopolitical environment

CITIC also states that the external geopolitical environment has improved, which will enhance market risk appetite. As China’s trading partners begin to recover, there will be more demand for Chinese goods and services, which will help to boost the economy further.

Financial reporting season performance

The A-share market is currently in the second key long window of the year, and the importance of the current financial reporting season performance has significantly increased. This is because the market is likely to react strongly to companies that perform well, while companies that perform poorly are likely to see their stock prices fall.

Rotation and recommendations

CITIC recommends that investors continue to avoid pure AI themed speculation, and instead focus on the main performance line. This means cutting high and low between industry sectors and within the digital economy. The main rotation has already begun, with investors looking for sectors that are likely to perform well in the coming months.

Conclusion

In conclusion, the outlook for China’s first quarter macro data is surprisingly positive, with signs of a comprehensive recovery and improvements in the external geopolitical environment. The targeted policy hikes and financial reporting season performance will also have an impact on China’s economy in the coming months. Investors should be cautious, however, and focus on the main performance line rather than pure AI themed speculation.

FAQs

1. What is the current state of China’s economy?
– China’s economy is moving from a partial recovery to a comprehensive recovery, with no signs of deflation.
2. What is the Political Bureau meeting in April expected to do?
– The Political Bureau meeting in April is expected to carry out targeted policy hikes in some weak areas of the Chinese economy.
3. What is CITIC’s recommendation for investors?
– CITIC recommends that investors continue to avoid pure AI themed speculation and instead focus on the main performance line.