Investors looking to China as one of the key underpinnings for 2009 returns have received some good, if somewhat qualified, news from a Credit Suisse survey of the Chinese consumer market.
According to the Credit Suisse research, overall consumption spending growth in China will slow this year but, with the exception of property, there is unlikely to be a major economic collapse.
It said the strongest argument for relatively stable consumer demand in China is the balance sheet for Chinese households is still heavy and underleveraged.
“China’s economy is also healthier than it was during the Asian financial crisis,” the Credit Suisse analysis said.
However, it said poor consumer confidence, unemployment and property market weakness were the biggest negatives for Chinese consumption.
