China's economy grew 5% in Q1, with the financial sector surging due to IPOs and stock trading, surpassing manufacturing for the first time in many years. However, consumption and real estate remained weak.
April 21, 2569 at 11.23:XNUMX, Bloomberg reported that The Chinese economy showed signs of recovery in the first quarter of 2569. The financial sector grew faster than the manufacturing sector for the first time in many years, driven by a robust capital market and fundraising through the stock market, while GDP expanded by 5%.
Data from the National Bureau of Statistics of China shows that the financial sector grew by 6.5% year-on-year, outpacing the manufacturing sector's 6.3% expansion. Activity in the financial sector was driven by IPOs and a surge in stock trading volume, bringing its growth to its highest level since the post-COVID era.
The Chinese stock market has also become one of the world's best-performing markets recently, as investors perceive the Chinese economy as resilient to shocks from oil prices and tensions in the Middle East. This has resulted in a surge in average daily trading volume in the domestic stock market and 30 new companies listing, raising nearly 26,000 billion yuan, an increase of almost 60% from the previous year.
While the manufacturing sector continues to grow strongly, driven by increased global demand for Chinese goods such as electric vehicles and industrial robots, exports increased by 15% in the first quarter and are expected to continue expanding in April, as reflected in high levels of international trade and shipping volumes.
However, consumer spending remained weak, with hotel and restaurant businesses experiencing slower growth to 4.3% from 5.6% in the previous quarter. Meanwhile, the construction sector contracted by 3.8%, the largest decline since the beginning of 2563, reflecting ongoing problems in China's real estate sector.
refer : bloomberg.com
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