Optimism on Wall Street: Chinese Stocks Experience a Boom

Shares of Chinese companies listed in the U.S., such as Alibaba Group Holding, Baidu, and JD.com, saw notable gains on Friday. This was prompted by the release of better-than-expected economic data from China, indicating the effectiveness of economic stimulus measures. In the last quarter of 2024, the gross domestic product grew by 5.4%, surpassing the Reuters forecast of 5.0%. Thanks to this strong final quarter, China's economy achieved a growth rate of 5.0% for the entire year, precisely in line with the government's targeted goal. This maintains China on its ambitious growth path, although a rise of 5.4% was recorded in 2023. Retail sales climbed by 3.7% in December, exceeding the expected 3.5%. At the same time, industrial production grew by 6.2%, compared to the projected 5.4%. Fixed-asset investments increased by 3.2%, slightly below the expected 3.3%. However, there was a slight increase in the unemployment rate from 5.0% in November to 5.1% in December. The announced possibility of tariff hikes by the future U.S. administration could nonetheless cast a shadow on the positive development. Nevertheless, analysts such as Raymond Yeung from ANZ Bank and Jan Hatzius from Goldman Sachs remain optimistic, emphasizing the importance of the stimulus packages. Alongside the economic upturn, a slight appreciation of the offshore yuan to 7.3398 USD was also observed.