Citi analysts predict that the Chinese government will introduce additional stimulus measures in the near future to support the economy, as signs indicate that export support may have peaked.
Despite increased trade tariffs, China's export growth exceeded expectations in August. However, there are concerns about a potential slowdown in export momentum due to global manufacturing activity and sluggish demand in key industries.
Furthermore, U.S. policy uncertainties, including potential trade restrictions, could impact Sino-U.S. trade relations in the coming years.
In response to slowing local demand, Citi expects Beijing to implement incremental stimulus measures, including rate cuts and mortgage repricing, to boost domestic consumption.
Overall, the Chinese government's actions to stimulate the economy will be crucial in navigating the challenges posed by external factors and maintaining growth momentum.
**Analysis:**
Citi analysts foresee the Chinese government taking proactive steps to address economic challenges, including the potential impact of trade tariffs and weak local demand. By implementing stimulus measures, such as rate cuts and liquidity injections, China aims to bolster its economy and sustain growth. Investors should monitor these developments closely as they could have significant implications for global markets and investment opportunities.