More and more signs point to slower spending in China. Analysts say not to worry - Recent News from USA
Vehicles at a Hongqi car dealer in Beijing. - Car sales are falling in China this year but one brand is speeding ahead: The national 'Red Flag' sedan is flying high, powered by purchases from the government, state companies and patriotic citizens.

More and more signs point to slower spending in China. Analysts say not to worry

While China has gone on a stimulus drive to revive its slowing economy, some analysts say the authorities have not done enough.

But Barclays Chief China Economist Jian Chang said she expects infrastructure investments to pick up in the middle of this year. That will help offset the effects of the slowing housing market and real estate investment in the country, she told CNBC’s “Street Signs” on Monday.

More can be done to unlock the “positive property equity” that many Chinese households have, Citigroup’s Liu said, referring to the real value of a property.

“If Chinese banks can offer various products such as home equity loans for people to withdraw their positive equity early on, this could create tremendous consumption power in China,” he said.

In addition, rural land reforms in China could unleash a “wealth effect” among rural farmers, Liu added.

“If the government can firm up land leasing titles for rural farmers, this could create tremendous wealth effect among rural families. Our estimate is $20 trillion wealth effect among rural families.”

“Down the road, China’s consumption potential is huge,” Liu concluded.

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