MARKET OVERVIEW - Chinese Data Supports the View of Accelerating Growth

Goldman Sachs economists reported that China's October activity data indicates a gradual improvement in growth momentum, particularly in consumption. Retail sales exceeded market expectations, while industrial production and fixed asset investment data were slightly missed. They also noted that unemployment rates decreased in October compared to September, according to a survey. Goldman Sachs stated, "This supports the view that GDP growth could accelerate from the third to the fourth quarter." However, they reminded that, taking into account the potential impact of U.S. tariffs under the Trump administration, they have reduced their GDP growth forecast for China in 2025 from 4.7% to 4.5%. Goldman Sachs expects continued policy easing in 2025, emphasizing that demand-side measures, particularly in the fiscal and real estate sectors, are crucial for the effectiveness of stimulus initiatives.