As the Chinese economy shows signs of rapid recovery from COVID-19, stocks related to 'China reopening' (resumption of economic activities) are gaining strength in the domestic stock market on the 19th.
As of 9:47 a.m. on this day, cosmetics stocks expected to benefit from increased demand from China and improved earnings are showing strong performance. At this time, AmorePacific (0.29%), AmoreG (2.15%), LG Household & Health Care (0.44%), Clio (1.93%), and Able C&C (1.71%) all rose simultaneously.
Steel stocks are also showing strength. Expectations that global steel demand will increase if the Chinese real estate market recovers appear to be driving stock price gains. These include POSCO Holdings (0.72%), Poongsan (7.84%), Dongkuk Steel (2.24%), and KG Steel (12.63%).
According to the National Bureau of Statistics of China, China's first-quarter gross domestic product (GDP) recorded 28.4997 trillion yuan (approximately 5,460 trillion won), an increase of 4.5% compared to the same period last year. This is the first time in a year that China's quarterly growth rate has exceeded 4%, since 4.8% in the first quarter of last year.
First-quarter retail sales reached 11.4922 trillion yuan (approximately 2,201 trillion won), up 5.8% year-on-year, with retail sales in March alone recording a double-digit increase of 10.6%.
Consumer sentiment, which had been cautious since the 'With Corona' policy began earlier this year, is analyzed to have fully revived starting in March.
Fu Linghui, spokesperson for the National Bureau of Statistics of China, said at a press conference yesterday, "The economic growth rate in the second quarter will be noticeably faster than in the first quarter," adding, "The role of consumption driving growth will become even greater, and investment will continue to increase."
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