Science & Technology

China’s market growth is the lowest since 2008

The tech sector remains the most vibrant wealth generator for China

China's market growth

China’s market growth is the lowest since 2008. Source:

GlobalData found that Chinese retail savings and investments market is set for the worst year since 2008. The reason for that is the domestic disruption and impact on trade partners as the COVID-19 pandemic has spread worldwide.

The report forecasts the market growth in the country will slow to 3.3% by the end of 2020, compared to the 4.7% estimated in January.

Growth in deposits will be modest in 2020, with little government support; households would have to dip into savings. Bond growth will surge as investors seek the stable return of fixed income products. Equities, however, will decline in 2020 by 20%. This is due to Chinese stock markets tumbling once COVID-19 became a pandemic in March. Furthermore, due to the prevalence of equity funds in China, mutual funds are expected to largely mirror the decline in equities forecasts
Ravi Sharma, Senior Banking and Payments Analyst at GlobalData

Along with that, China’s 2020 growth is most at risk from a second-wave outbreak, which significantly impacts the expected full-year growth.

The outbreak is more likely to impact China’s HNW (high net worth) sector, as people will struggle to accumulate wealth in the immediate future.

The study highlights that the disruption to global demand will affect the wealth market in China, even as it gets back to work. Therefore, wealth managers should be aware that many of their HNW clients will face the negative impact of the coronacrisis on their businesses.

We’ve reported that China’s digital currency to be piloted in McDonald’s and Starbucks



Pay Space

6991 Posts 0 Comments

Our editorial team delivers daily news and insights on the global payment industry, covering fintech innovations, worldwide payment methods, and modern payment options.