MarketReader Co-Founder and CEO Jens Nordvig joined host Haydn Brain of OPTO Investing Intelligence to discuss China’s worsening economic landscape, highlight its growth slowdown, question its economic data reliability, and analyze negative trends in Foreign Direct Investment (FDI) and capital flows.
China’s Crisis of Confidence
Sustained capital outflows recently prompted a loosening of central bank policy and sparked rumors of a stabilization fund, but Nordvig is skeptical that these efforts will fix the economy.
Read more: “The Trillion-Yuan Question” ➔
China vs India
“Investors are really rethinking how they’re exposed to China,” says Nordvig, explaining why India is emerging as the chief beneficiary of China’s recent decline.
“Read more: “The Biggest Winner” – Why India is Outdoing China ➔
Nordvig underscores the dramatic drop-off in China’s birth rates, and its implications for foreign investment. In 2023, the number of new births fell 5.7% year-over-year, contributing to a 0.15% fall in China’s population.
From a property crisis to a record-low birth rate, we dive deep into the challenges China currently faces, mentioning recent measures announced by Chinese policymakers as they actively seek to support the economy, including a 2 trillion yuan ($280 billion) rescue package. We also discuss China’s equity market rollercoaster, decoding recent downturns and rebounds before shifting our attention to India and why it’s emerging as a key destination for emerging market flows.
Jens Nordvig brings a wealth of experience from his roles as a Managing Director at Goldman Sachs, Senior Investment Associate at Bridgewater, and Head of Fixed Income Research at Nomura. In 2021, Jens co-founded MarketReader, dedicated to explaining market movements through innovative empirical real-time analysis. Enjoy!