Part 9/12:
Economists from CityGroup described Golden Week activities as "lukewarm," a stark contrast to a brief rally in Chinese equities that was expected to bolster wealth effects. Unfortunately, the comparatively limited impact on household assets meant that consumer spending remained subdued, reinforcing concerns about China’s fragile recovery.
Challenges of a Bustling but Cautious Economy
The paradox of bustling activity but tepid consumer spending underscores ongoing structural issues. Despite record crowds and high mobility, Chinese households remain reluctant to spend amid persistent concerns over income security, youth unemployment, and property market weakness—all factors prolonging economic uncertainty.