Investor optimism in the Chinese mainland is on the rise as robust economic policies and targeted fiscal measures attract global investors. According to HSBC's Emerging Markets Sentiment Survey for March, nearly half of surveyed investors now see the Chinese mainland’s economic rebound as the key driver for emerging markets. The survey, conducted between January 24 and March 12, involved 126 investors from 125 institutions managing a combined $439 billion in emerging market assets.
A surge from 29 percent in December to 45 percent in March underscores a significant shift in market sentiment. HSBC's global head of emerging markets research, Murat Ulgen, noted that investors remain upbeat about the Chinese mainland's growth prospects, buoyed by strategic policy initiatives and an emphasis on boosting domestic demand.
Central to these developments are a series of measures aimed at strengthening consumer confidence. The Chinese mainland has unveiled a 30-point policy package that includes efforts to promote income growth, reduce financial burdens, and stimulate consumer spending. Additionally, the doubling of ultra-long special treasury bonds issuance to support consumer goods trade programs has signaled renewed momentum in economic strategy.
Highlighting the positive outlook, retail sales of consumer goods reached over 8.37 trillion yuan (approximately $1.17 trillion) in the first two months of 2025, marking a 4 percent year-on-year increase. Notably, one-fourth of survey respondents identified the Chinese mainland as the emerging market with the strongest growth potential over the next 12 months.
This surge in investor confidence not only reflects the effectiveness of targeted domestic policies but also signals a broader trend of renewed optimism across emerging markets. Global market watchers are closely monitoring how these measures will drive sustainable growth and reshape economic dynamics.
Reference(s):
cgtn.com
