China's economy shows signs of recovery, driven by innovation

Morgan Stanley's chief China economist, Robin Xing, reports positive changes in China's economy, driven by innovation and recent policy shifts. He notes a revival of investor interest in Chinese assets, marking a significant change in sentiment. Xing highlights three key areas of progress: restructuring debt, rebalancing towards consumption, and implementing reforms to boost confidence. He states that since a policy pivot in September, the pace of economic recovery has increased. Previously, the reflation process was slow, with only 20% progress before September. Now, Xing estimates it has reached 50%, aided by initiatives like debt relief and consumption stimulus.