Fitch: China's manufacturing investment growth to recover on US-China partial trade deal
|Fitch Ratings said in its latest report published on Thursday that it sees manufacturing investment in China expanding after China reached the phase one trade deal with the US.
Key Headlines:
"China's partial trade truce with the US could provide growth impetus for manufacturing fixed-asset investment (FAI) in 2020.
State-owned enterprises are likely to lead China's manufacturing FAI, due to their better access to external funding.
Corporate capex spending may recover as some projects that were previously put on hold due to economic uncertainties may now resume.
However, the extent of the recovery will depend on the implementation of the US-China "Phase One" trade deal
China's manufacturing FAI grew 3.1% YOY in 2019, which is 0.6pp faster than in 11M19 and the fastest pace for the last five months.”
The above report's findings have failed to impress the markets, as they remain concerned about the new coronavirus outbreak in China that is quickly spreading into other major economies. The safe-haven yen is on the bid, with USD/JPY down 0.15% near 109.65 while S&P 500 futures are modestly flat on the day.
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