ReferIndia News China's Two-Speed Economy Drives Divergent Stock Market Performance

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China's Two-Speed Economy Drives Divergent Stock Market Performance

Published on: Jan. 25, 2026, 6:31 a.m. | Source: scanx.trade

China's stock market reflects a bifurcated economy where industrial and technology sectors significantly outperform consumer companies. Export-oriented firms benefit from global AI infrastructure demand, with companies like China XD Electric Co. gaining 75% and TBEA Co. up 28% this year. Wall Street firms including Morgan Stanley and JPMorgan favor industrial champions over domestic consumption plays, as earnings forecasts for industrials climb 10% versus 5% for consumer sectors.

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