The Chinese government is now placing equal emphasis on a negative external shock and inadequate domestic foundations — a serious warning for an already sluggish economy.
Very interesting piece. What can we learn from the change in personal consumption in pre and post-COVID Hong Kong, which links closely to the change in the domestic security environment? I would speculate that a tougher security environment would lead to a stronger desire for higher household savings. This could validate your hypothesis of the root cause of low personal consumption proclivities in the PRC, although I believe the social security net is a good bit better in Hong Kong. Surely HKMA has a statistical data series on this.
Very interesting piece. What can we learn from the change in personal consumption in pre and post-COVID Hong Kong, which links closely to the change in the domestic security environment? I would speculate that a tougher security environment would lead to a stronger desire for higher household savings. This could validate your hypothesis of the root cause of low personal consumption proclivities in the PRC, although I believe the social security net is a good bit better in Hong Kong. Surely HKMA has a statistical data series on this.