Fidelity Analyst Survey: China – where should investors look amid changes?

By: Trademagazin Date: 2025. 02. 20. 11:13

China faces a number of economic challenges – a struggling housing market, persistent deflationary risks, weak consumer demand and even the US looking to raise tariffs. But Fidelity International analysts see a number of promising areas in the country as the Chinese government continues its growth-supporting program into 2025.

Doubts about investment in China resurfaced last year as the country grappled with a number of economic challenges. However, Fidelity’s Annual Analyst Survey shows that the government’s stimulus measures are expected to slow the easing of economic pressures and improve earnings prospects for several sectors.

Fidelity’s China analysts are looking ahead to the country’s fiscal and monetary policies in 2025 with high expectations: more than 70 percent say monetary policy will have a positive impact on corporate fundamentals, while more than 80 percent say the same about budget plans. The economy is slowing, but the slowdown is expected to be offset by stimulus measures aimed at boosting domestic consumption and reducing oversupply.

A turning point in growth

After months of piecemeal measures failed to boost the economy, China unveiled a broad stimulus package late last year, including interest rate cuts, housing subsidies and a program to offer consumers the chance to trade in their old appliances for subsidized models to boost consumption. Leaders also pledged to expand budget spending and ease monetary policy at the Central Economic Work Conference in December, where they outlined economic goals for the year ahead. Demand generation has become a top priority for China. In early 2025, the government expanded the consumer exchange program and expanded financing for industrial equipment upgrades. The incentives will lead to a gradual recovery in this segment of the economy, which has struggled to recover so far.