HSBC is ‘very positive’ about the future of China’s economy, CFO says

**China’s Economic Transition and HSBC’s Optimism** China’s economy has faced challenges in the past year due to a decline in key industries like real estate, infrastructure, and exports.

To address this, the Chinese government has focused on developing the manufacturing and domestic technology sectors, aiming to modernize its economy and maintain global competitiveness.

Despite these short-term headwinds, HSBC remains confident in China’s long-term economic outlook.

The bank’s CFO, Georges Elhedery, emphasizes that China is transitioning towards a more成熟 economy, with a greater emphasis on consumers, the services industry, and high-value products like electric vehicles and batteries.

This transition helps avoid the “middle income trap” where economic growth stalls, and it aligns with the Chinese government’s recent push towards these sectors.

Elhedery believes China can sustain its growth pattern by focusing on sustainability and consumer-driven products.

While some economic challenges may persist for a few quarters or even years, Elhedery expresses optimism that China will emerge stronger in the long run.

HSBC has reduced its exposure to Chinese commercial real estate but remains positive about the property market’s potential for recovery.

Elhedery believes that most of the challenges related to the property market are behind us, but the sector is not entirely out of the woods.

He anticipates lingering effects as the market adjusts, but the impact will likely be less significant than last year.