'Slowly it feels like recovery will be felt.'
The reopening of China through the relaxation of the zero-Covid policy is expected to bring change to the world's second largest economy next year.
But the story for this year has not yet ended with the reading of China's main data in November showing that the Great Wall country's economy is still moving weakly.
China's producer price index (PPI) data was unchanged at -1.3% for 2 consecutive months, but managed to beat the market's -1.5% forecast.
This indirectly also signals weakness in activity and falling demand in the Chinese economy when the consumer price index (CPI) data declined 1.6% compared to 2.1% the previous month.
Zhiwei Zhang, Pinpoint Asset Management's chief economist, confirmed that the readings indicated that China's economic momentum was still weak.
Touching on the easing of restrictions on the zero-Covid policy, Zhang rejected that it would have an immediate impact on China's economic growth although he still welcomed the news.
Meanwhile, the Politburo of the Communist Party urged the government to focus on stabilizing growth in 2023, encouraging domestic demand and opening up to the outside world.
During a political meeting held last Tuesday, the party also outlined several weaknesses in China's economy that need to be resolved to drive growth in the market and consumers.
Please note that China's economy is experiencing a severe contraction, the result of the Covid-19 restrictions which are restricting the growth of manufacturing activity and inhibiting consumer spending.
