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Showing posts with the label Chinese economy

What is the Consumer Price Index (CPI)?

What is the Consumer Price Index(CPI)? The Consumer Price Index (CPI) is a measure of the change in prices paid by consumers for a basket of goods and services. It is one of the most widely followed economic indicators, and it is used by investors to gauge inflation and make investment decisions. How is the CPI calculated? The CPI is calculated by the Bureau of Labor Statistics (BLS). The BLS surveys households across the United States to collect data on the prices they pay for goods and services. This data is then used to create a "basket" of goods and services that represents the spending habits of the average American household. The BLS calculates the CPI by comparing the prices in the basket of goods and services in a given month to the prices in the same basket of goods and services in a base year. The base year is usually 2000. How does the CPI affect investing? The CPI is an important indicator of inflation. When the CPI rises, it means that the cost of living is incre
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The present and future of China's stock market: a downturn and a possible recovery

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Challenges in the Chinese economy The Chinese economy faces a number of challenges. The Chinese government is projecting GDP growth in the mid-4% range for 2024, and the real estate market continues to be weak. These conditions are weighing heavily on the Chinese economy. In particular, there are ongoing concerns about the economy due to the significant decline in the real estate market and rising deflationary risks. Against this backdrop, the Chinese government is looking to increase fiscal stimulus. Potential for a rebound in Chinese stocks For Chinese equities to rebound, investors will need to keep a close eye on the tangible implementation of policies, especially those related to potential catalysts such as real estate easing, pro-consumer policies, and private sector support. Currently, the Hang Seng Index is trading at a discount of more than 50% to its 2018 highs. This presents a bargain buying opportunity for Chinese equities for many investors. Taking a medium- to long-term v
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