OREANDA-NEWS  The fragile position of the Chinese economy is reinforced by weak domestic demand, which has been showing a steady downward trend in growth for the past six months. About this was reported by Roman Lukyanchikov, analyst at Freedom Finance Global.

He commented on the news that the Chinese economy grew by only 4.8 percent in the third quarter, which was the weakest performance in a year.

According to the analyst, the Chinese authorities could solve this problem by stimulating domestic consumption. However, the government's attempts to do this, which began in 2024, have so far proved insufficient.

Lukyanchikov believes that against the background of uncertainty in negotiations with the United States, the Chinese leadership will maintain a wait-and-see attitude and limit itself to a small amount of support until the end of this year. The upcoming Fourth Plenum of the CPC Central Committee, which will determine the country's economic policy for the next five years, will help investors better understand the long-term view of the top leadership on the development of the Chinese economy.

It is expected that the Chinese authorities will promise to stimulate domestic demand, as well as focus on technological breakthroughs and modernization of the industrial complex. According to the expert, this approach cannot be called a failure, and it can lead to the growth of individual sectors. However, it looks risky for the broader Chinese stock market.

Earlier it was reported that concerns about deepening structural imbalances are growing in China. Although the 4.8 percent growth met expectations, there are doubts that China will be able to maintain such a pace at a time of growing trade tensions with Washington.