Chinese shares recouped some of its earlier losses, with the benchmark Shanghai stocks finishing slightly higher on Tuesday, while investors were cautious ahead of a key U.S. inflation report and a string of domestic economic data due later this week.
The focus this week is on U.S. inflation data due on Wednesday. China is also scheduled to release March inflation, trade and credit lending data this week. China is also due to report its first-quarter gross domestic product (GDP) data and activity indicators next week.
“We think China’s economy will find a firmer footing in 2024,” analysts at HSBC said in a note. “The economy should expand at around 4.9%, a touch slower than in 2023, but an arguably better performance, given that base effects will no longer flatter the numbers. Although we expect the property sector to stabilise, it will remain a drag for some time yet.
There are also pockets of growth, driven by support for areas, such as manufacturing investment.
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