Chinese Stocks Are Sending a Scary Signal About the Economy
- Earnings miss from biggest liquor maker spooked investors
- Next key test seen as Alibaba’s Single’s Day on Nov. 11
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As exporters feel the heat of the trade war, China’s powerful domestic-consumption engine was supposed to provide some protection for investors in the nation’s stocks.
That’s not working out so well. A narrative that’s captured traders’ attention in recent weeks has been a “consumption downgrade” in the world’s second-biggest economy. With official data already showing retail sales growth slowing, investor alarm increased when China’s biggest liquor maker, Kweichow Moutai Co., reported its weakest profit expansion in almost three years.