Finimize - 😎 China’s still got it

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Today's big stories

China’s vital signs have started to improve
How to find a good industry to invest in – Read Now
Inditex’s spending plans struck investors as the emperor’s new clothes

Alive And Kicking

What’s Going On Here?

Data out on Wednesday showed that China’s economy is pulsing with strong signs of life.

What Does This Mean?

China's recent car sales didn't quite live up to folks’ visions of a super-powered post-COVID boom – but the country’s receiving some good news at last. Data out on Wednesday showed the economy’s started to thaw, with retail sales up 3.5% in the first two months of the year compared to the same time last year. That’s a welcome return to growth after months of decline, and it’s not the only boon China’s seeing: industrial output also sped up, and the value of new apartment sales is ticking up too. And get this: half of this data deals with January, when a new wave of Covid infections swept China – so it probably doesn’t reflect the true strength of the economy.

Why Should I Care?

Zooming in: Splash the cash.
Analysts expect this momentum to continue, but the country still needs to overcome some pitfalls. Take unemployment: the government thought the reopening would lead to a pickup in hiring – but with joblessness on the rise, that’s clearly not what’s happening. And that means China’s probably going to need to inject some cash into the system in order to hit growth targets. In fact, it’s already made a start: the central bank poured more money into the financial system on Wednesday than it has at any time since 2020.

The bigger picture: Visit China.
China's growth goals may not be ambitious, but hitting them will still turn up the dial of global demand – and with the recession-threatened West not pulling its economic weight, that would be a real relief. One area that stands to benefit a lot is tourism in Southeast Asia, as Chinese jet-setters fare forth once again. And as of this week, it’s a two-way street: after three years of national navel-gazing, China’s reopening its borders to foreign tourists.

You might also like: Five spicy stocks for China’s reopening.

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Analyst Take

Finding A Stock Is Good, But Finding A Whole Industry Is Golden

By Theodora Lee Joseph, Analyst

Spotting good companies is great, but spotting good industries is even better.

After all, if an industry is growing, most companies operating there stand to benefit.

As they say, a rising tide lifts all boats – yes, even the bad ones.

Since I rarely have time to find good companies, I keep an eye out for good industries instead. You can do that too.

That’s today’s Insight: how to find a good industry to invest in.

Read or listen to the Insight here

The tech world has a new child prodigy

Three popular kids had everyone talking last year: web3, crypto, and the metaverse.

But it seems this is the year of geek chic. Artificial intelligence (AI) has swaggered onto the scene, and its street smarts have caught just about every investor’s attention.

This won’t just be fifteen minutes of fame, either. Plenty of industries are already joined at the hip with AI, from entertainment to manufacturing to healthcare. Heck, even art and sport.

But with a million ways to play the AI theme, it’s essentially impossible to handpick the brightest sparks.

Mind you, maybe you won’t need to: IG has published a free list of AI exchange-traded funds, so you can spread your exposure with a bundle of super-smart stocks.

Check It Out

Your capital is at risk. The value of shares, ETFs, and ETCs can fall as well as rise, which could mean getting back less than you originally put in.