China’s Economy In The Year Of The Tiger

Rise and shine, traders! Welcome to another week of trading. Today we’re going to investigate what the Chinese Year of the Tiger may look like for the Chinese economy and its potential impact on other markets. After that, we’ll give you an overview of what looks to be a fairly quiet week in the markets.

Roaring into 2022

In case you missed it, 2022 is the Chinese Year of the Tiger and it officially began on the 1st of February. What kind of economic impact could we see this year? Let’s see…

Chinese Growth

China’s manufacturing and industrial sectors had a good 2021, all things considered. With the government now actively propping up the economy, we could be in for some real growth.

It wasn’t an easy 2021 by any means, yet the country’s major industrial firms surged 34.3% year on year. And the manufacturing sector maintained rapid profit growth, rising 48.4% from the previous year. Wowza!

The government has set up good conditions to continue that growth, too.

The state is expected to strengthen the muscles of the real economy through large scale subsidies. Tax and fee cuts will play a vital role in promoting stable economic development in 2022.

The central bank will use various monetary policy tools to maintain respectable liquidity levels.

What about consumer behaviour?

The Year of the Tiger is expected to be a pretty sparkling year for gold jewellery retailers, as the striped cat is the second-most popular animal in the Chinese zodiac, behind only the dragon.

A wide range of golden tiger products — coins, bracelets, necklaces, pendants, and even gold bars — have been available since early January.

Chinese consumers like to purchase gold products associated with the zodiac animal of the year as birthday or wedding gifts, or for themselves, as they believe the zodiac animal will bring luck and fortune.

And it’s not just China. The UK’s Royal Mint has designed a collectible gold coin, embossed with a tiger to commemorate this auspicious occasion and perhaps tap into the burgeoning market for this kind of collectible. The 8 kilogram coin has a diameter of 18.5cm.

Gold prices in the Year of the Ox dropped about 1 per cent following a very strong 20% increase during the Year of the Rat in 2020 and a similar 18% bump in the Year of the Pig in 2019.

So, with the tiger zodiac sign being particularly popular, traders will be hoping that gold sales, combined with continued economic instability, will push the market price up.

Are you enjoying a roaring start to 2022?

How has your 2022 fared so far? Are you having a grrrreat start? What are you looking forward to about trading most this year? Let us know at @_Contentworks!

Top trading events week commencing 07.02.22

There’s not too much going on this week, here’s when and where you need to keep an ear out.

Monday

● No events scheduled.

Tuesday

● CAD — Balance of Trade (DEC)

Wednesday

● AUD — Westpac Consumer Confidence Index (FEB)

Thursday

● CNY — New Yuan Loans (JAN)

● USD — Core Inflation Rate YoY (JAN); Inflation Rate YoY (JAN)

Friday

● GBP — GDP 3-Month Avg (DEC); GDP Growth Rate YoY Prel (Q4); GDP YoY (DEC)

● USD — Michigan Consumer Sentiment Prel (FEB)

Here at Contentworks we closely follow market movements and prep content that we think your traders would love to read. Let’s get you started right here.

From all of us at Contentworks, Happy New Year!

The Contentworks team