Helena Lyng Blak
12 weeks ago

Is a rebound underway for China?

An increase in South Korean exports indicates that China has resumed its purchasing activities, says financial expert.
Hung Chung Chih, Shutterstock
Hung Chung Chih, Shutterstock

Economic consensus agrees that the US economy is entering a re-acceleration, but the jury remains out on China. There is, however, reason to be optimistic on the behalf of Chinese economy says financial analyst Andreas Steno:

“When emerging export volumes are on the rise, it means that the Chinese consumption sentiment is starting to improve from abysmal levels. South Korean exports have risen markedly in recent months, which is a strong hint that China is back buying.”

Energy exports furthermore hints at a Chinese restocking.

“A restocking in China typically occurs ahead of major attempts to revive the economy via monetary -and fiscal stimulus to ensure that commodity storages are filled up with cheap resources before the actual rebound,” Steno states

The chance of a cyclical rebound in a heavily industrialized market such as China would, according to Steno, suggest that commodities are currently undervalued.


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