Bloomberg: China's consumer stocks are stuck in a "lost decade" as capital flows into SI
Prepared by Sintelligent with the help of SI. Publication time restored from the build log. . Updated: .
China's bet on SI is pulling money away from the rest of the economy: the market is voting for technology.
MSCI China's consumer goods indexes have fallen about 18% in six months, almost to 10-year lows, while the tech index, packed with SI companies, is more than double its 2016 level. Retail sales in August grew just 0.4%, and consumer-sector companies missed profit expectations by almost 50%. Analysts link the imbalance to Beijing's drive for technological supremacy, which pumps capital into SI while barely reviving domestic demand.
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