Skip to main content
China’s first official economic gauge for March signaled a stabilization, easing one of the biggest worries for the global outlook. The manufacturing purchasing managers index rose to 50.5 from 49.2 last month, the biggest increase since 2012 and exceeding all estimates by economists. Both new orders and new export orders – leading sub-gauges that signal future activities – rose to the highest levels in six months.
Mainland Chinese shares soared, with the Shanghai composite up 2.58 percent to 3,170.36, while the Shenzhen component surged about 3.64 percent to 10,267.70. The Shenzhen composite jumped 3.571 percent to 1,755.67. Looking ahead, there is now a decent chance that growth in China may bottom out slightly earlier than previously anticipated.
Goldman Sachs said that Chinese A-shares “ would give approximately 50% and 15% potential upside from current levels if retail optimism were to return to its peak in 2015 and 2018, respectively.” If individual investors get excited and invest at the peak levels we’ve seen in the recent past, Goldman sees up to 50% upside – in the entire Chinese stock market.
A Chinese rights activist was recently detained for sharing articles about social issues in China on Twitter, in the latest instance of the regime’s crackdown on citizens’ use of the overseas social media platform.
The Chinese government will add fentanyl-related substances to their list of controlled drugs curtailing the manufacturing and distribution of one of the world’s most powerful opioids. The new laws are likely to be interpreted as win for US President Donald Trump. This could be a game changer on what is considered to be the worst and most dangerous, addictive and deadly substance of them all,” Trump posted on Twitter .
Previous: China, US Trade and the Economic Effects
Previous: US and China Feds Help Change the Market Outlook