Investor confidence in China’s economy is gaining significant momentum, according to HSBC’s latest Emerging Markets Sentiment Survey. The survey reveals that 45% of investors now view China’s recovery as the primary upside factor in the emerging market outlook, a notable increase from 29% in December.
Conducted between January 24 and March 12, the survey polled 126 investors from 125 institutions overseeing a combined $439 billion in emerging market assets. Analysts led by Murat Ulgen, HSBC’s global head of emerging markets research, noted, “Investors are upbeat on China’s growth prospects. The latest announcements from Chinese officials to stimulate the economy seem to resonate with emerging-market investors.”
A quarter of respondents identified China as the emerging market economy most likely to deliver the strongest growth acceleration over the next 12 months—the highest share among all developing nations. This optimism is fueled by China’s commitment to making domestic demand the main engine of economic growth. Measures include doubling the issuance of ultra-long special treasury bonds to support consumer goods programs and unveiling a 30-point policy package to boost consumer confidence.
China’s retail sales of consumer goods, a key indicator of consumption strength, reached over 8.37 trillion yuan (about $1.17 trillion), climbing 4% year on year in the first two months of 2023, according to the National Bureau of Statistics. These figures highlight the country’s robust economic recovery and its growing influence on global markets.
