All articles tagged with #government stimulus
China's economy showed signs of a sharp slowdown in July, with declines in factory output, retail sales, and investment, amid ongoing trade tensions, regulatory crackdowns, and adverse weather, prompting calls for additional government stimulus measures.
Chinese stocks experienced a significant downturn, with the Shanghai Composite index falling 6.2% and the Shenzhen Component index shedding 8.1% in its worst week since 2018. China's economy faces challenges including a record downturn in the real estate market, high youth unemployment, deflation, and a falling birthrate, leading to concerns about long-term economic outlook and low expectations for government stimulus measures. In contrast, India's stock market has surged to record highs, reflecting the potential of its fast-growing economy.
Chinese stocks have plummeted, erasing over $6 trillion in market value since their 2021 peak, with the Hang Seng China Enterprises Index losing 11% in 2024 and the Nasdaq Golden Dragon China Index slipping for a fifth consecutive day. The market downturn is impacting the nation’s asset management industry, prompting mutual fund closures to reach a five-year high. Despite Beijing's efforts to reassure investors, including ruling out massive stimulus, uncertainties about the economy persist, leading to a loss of investor confidence and a significant underweight allocation to China by Asian fund managers.
The net worth of the typical American family surged by 37% during the pandemic era, driven by higher home and stock prices and government stimulus measures, according to the Federal Reserve's triennial Survey of Consumer Finances. This increase in net worth was the largest on record since 1989. However, wealth gaps remain significant, with families in the bottom 25% having a median net worth of $3,500, while the top 10% had $3.8 million. The pandemic relief funds and government support helped alleviate debt burdens and increase asset values, but the expanded social safety net has since diminished, and inflation has impacted household wealth.