Finimize - 🦸‍♂️ Super-China

Hi Reader, here's what you need to know for April 3rd in 3:08 minutes.

🚨 This time it’s your final chance. Join Bestinvest’s Alice Haine for A Guide To Maximizing Your Tax Allowance this Monday, and discover some last-minute money-saving moves before the UK tax year ends. Get your free ticket

Today's big stories

China's economy finally hit the accelerator
Here’s how retail investors feel about the markets now – Read Now
UK house prices plunged, dropping at the fastest annual rate in 14 years

Beijing’s Bouncing

What’s Going On Here?

Friday's fresh data showed that China could be feeling its long-awaited economic rebound.

What Does This Mean?

China’s first official economic activity indicator for last month is out, and it's good news: local government efforts to boost folks' spending seem to be working, with households finally more willing to splurge and travel – a key sticking point since Covid restrictions were relaxed. On top of that, warmer weather has kicked building projects into high gear across the country, helping one construction activity gauge hit an all-time high. That meant an index tracking non-manufacturing sector activity grew at its fastest pace in over ten years – and even though manufacturing itself slowed slightly from February, it still outpaced economists' predictions. The takeaway: these signs suggest the world's second-largest economy is seeing the kind of bounceback that we’ve all been waiting for.

Why Should I Care?

The bigger picture: Still some sore spots.
This news is a shot in the arm, and the momentum’s expected to hold up: in fact, economists think that China could breeze past its 5% economic growth target this year as a result. What's more, domestic demand kicking back in will be a genuine relief for the government: after all, that slowdown in the manufacturing sector is a genuine worry, and there’s a chance it’ll continue as global growth keeps dropping off. And that’ll leave a whole lot of slack for other areas – like consumer and government spending – to pick up.

For markets: Investor heaven.
The update has investors smiling – and the government’s promise to introduce measures improving market access and the business environment didn’t hurt either. Plus, markets should receive another extra boost before long: Alibaba’s already started talks about listing its logistics arm, and JD.com has applied to list two of its subsidiaries – another sign the government is warming to the private sector.

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

Copy to share story: https://go.finimize.com/wp/news/beijings-bouncing/

🙋 Ask a question

Analyst Take

Retail Investors Are More Upbeat: Here’s Where You’re Seeing Opportunities

By Daniel Johnston, Analyst

There’s no question we’ve seen some major turbulence in the market this year.

But if you’re like most Finimizers, you’re looking past the market turmoil and seeing the potential for gains on the horizon.

And there are a couple of investment themes you’re keeping an especially close eye on, according to our latest global survey, Modern Investor Pulse.

That’s today’s Insight: why retail investors are optimistic and where they’re finding opportunities now.

Read or listen to the Insight here

The Swiss Army knife of investing

Having one trusty tool is decent, sure, but you’ll be caught out in a lot of situations.

Take investing: an asset that thrives in one environment might tank in another, so in topsy-turvy times like these, you’ll want a toolkit that can handle whatever the world throws at you.

Thing is, advanced diversification tactics are normally used by more experienced traders, and they can be hard to pick up for the first time.

That won’t be a problem for you, mind you: check out IG’s free online course, and you’ll discover the diversification tip and tricks that help the pros stay on top of volatile markets.

Upgrade your investing toolkit with IG.

Find Out More

Your capital is at risk. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.