China’s V-shaped stockmarket bounce

China's economy contracted sharply in the first three months of 2020, but it has since staged a V-shaped comeback, with the CSI 300 index up more than 15% so far.

Shoppers in Beijing
The Golden Week holiday prompted consumers to open their wallets again
(Image credit: © Yan Cong/Bloomberg via Getty Images)

China was the first country into the Covid-19 crisis and is now the “first out”, writes Larry Elliott in The Guardian. The world’s second-biggest economy contracted by an annual 6.8% in the first three months of the year, but has since staged a V-shaped comeback. Official statistics show that GDP increased by 4.9% on the year in the third quarter. The International Monetary Fund (IMF) thinks China will grow by 1.9% in 2020, making it the only major economy set to expand.

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