"China's Resilient Economic Rebound: Retail and Industrial Data Exceed Expectations"

China's industrial output and retail sales exceeded expectations in the first two months of 2024, providing hope for policymakers aiming for a 5.0% GDP growth target, despite ongoing weakness in the property sector. While the Lunar New Year holiday boosted consumer spending, analysts believe sustained robust consumer spending may be challenging without further stimulus. The protracted crisis in the property sector remains a major concern, with declines in property investment and poor demand. To achieve its growth target, more policy easing, particularly in fiscal, housing, and consumption, is deemed necessary. Additionally, China faces structural challenges in its economy, and there are concerns about potential stagnation if steps are not taken to reorient the economy towards household consumption and market-allocation of resources.