Chinese markets are struggling with a lack of direction, as the CSI 300 index faces a potential fourth consecutive annual loss. With consumer confidence low due to a weak property market and corporate profit pressures, China is battling deflation and sluggish domestic demand. Despite similarities to Japan’s past economic challenges, China’s focus on new industries like EVs and renewable energy may offer long-term benefits, but concerns about excess manufacturing capacity and global trade tensions are dampening investor interest.
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