China's Disappointing Economic Performance

China's stock market has been underperforming and experiencing a decline, standing out from the positive performance of most global stock markets in 2023 and in the beginning of 2024. Despite expectations of a boom in the Chinese economy after the lifting of COVID-19 lockdowns, consumers did not engage in the anticipated revenge spending. Additionally, there has been a reevaluation of global trade, with many companies considering diversifying manufacturing outside of China, leading to a decline in the China trade's performance. The disappointing economic situation in China, particularly in the property sector, poses challenges for the authorities to stimulate the economy. Instead of implementing large-scale stimulus measures, the Chinese government has been implementing piecemeal initiatives with limited effectiveness. The property sector, which accounts for a significant portion of the Chinese economy, is facing challenges and has not fully recovered since the default of property developer Evergrande. As a result, China's market performance raises concerns for global investors who are now hesitant to invest in the Chinese market, considering the risks and limited prospects for significant policy intervention.