20250224 TA China's deflationary pressures on stock market img

Investors are closely watching how China's stimulus policies will counter deflationary pressures. © Illustration by Hiroko Aida

China penny-pinchers produce new stock market winners as deflation woes persist

Blockbuster film fuels hope in consumption stocks; shares related to luxury spending fall

SHANGHAI/HONG KONG -- Investors in the Chinese stock market are trading on buzzwords like "consumption downgrade" and "value for money" as Asia's largest economy struggles in its current deflationary environment, creating winners and losers among listed shares.

The change in fortunes is a sign that the beneficiaries of Beijing's efforts to revive consumer confidence are uneven -- and could have major consequences for investors.

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