Market rally in China had a positive impact on its economy: Tai Hui, JP Morgan AMC
The stock market rally in China, in the first half of the year, has to some extent impacted the economy in a positive way, says Hui.
By 
| Updated:
| Updated: 
In an interview with Punita Kumar Sinha of Pacific Paradigm Advisors, Tai Hui, JP Morgan AMC, shares his views on the Chinese market and the world's 2nd largest economy. Excerpt:
Punita Kumar Sinha: What do you make of the stock market rally in the first half of the year that we have seen? Tai Hui: The stock market rally in China, in the first half of the year, has to some extent impacted the economy in a positive way. If you look at the GDP growth of the second quarter, it is at 7%, which seems unusual given the fact that we have seen fixed asset investment slowdown, consumption slowdown and yet we still manage to get respectable growth number. The financial service sector has been helped by the buoyant stock market activity generating greater volume in transactions.
Additionally, the fact is that the positive wealth effect of the stock market rally did have positive impact, feeding some of that wealth back into the real estate market. Therefore, the stock market has always been an interesting wealth generator for the shorter term but I don't necessarily think that this could be a major factor that would drive the economy in the longer run.
Punita Kumar Sinha: What do you make of the stock market rally in the first half of the year that we have seen? Tai Hui: The stock market rally in China, in the first half of the year, has to some extent impacted the economy in a positive way. If you look at the GDP growth of the second quarter, it is at 7%, which seems unusual given the fact that we have seen fixed asset investment slowdown, consumption slowdown and yet we still manage to get respectable growth number. The financial service sector has been helped by the buoyant stock market activity generating greater volume in transactions.
Additionally, the fact is that the positive wealth effect of the stock market rally did have positive impact, feeding some of that wealth back into the real estate market. Therefore, the stock market has always been an interesting wealth generator for the shorter term but I don't necessarily think that this could be a major factor that would drive the economy in the longer run.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Related Articles
Tribute to his leadership in Blue Economy, ocean governance: Seychelles Prez on conferring 'Guardian of the Blue Horizon' title on PM Modi2026-06-28T10:05:07Z- Charting the global economy: US spending rises, weather looms2026-06-28T04:59:09Z
- China industrial profits stay resilient as economy leans on factories, exports2026-06-27T04:25:02Z
ADVERTISEMENT
