...yes, they have the means to spend and spend big, but that...

...yes, they have the means to spend and spend big, but that does not mean they would. And if they would, they would have already done so.
...same argument as those who showed how gold stocks have had underperformed gold, which based on their argument, it could mean they have enormous potential to close the gap. But as I have said before, it didn't do that over the past 8 years, so why would we expect them to do so otherwise.
...the Chinese administration is trying to coax its citizens to spend more by lowering deposit rates, but it could make them spend less or flock to stocks to speculate.

The key to getting the Chinese economy moving in the right direction is consumer spending... and boy, do they have a massive engine of savings sitting there, ready to be spent and invested.
Chinese households have close to US$21 trillion stashed away in bank deposits in mid-2024, while US households have circa US$900 billion.
Consumer spending in China is less than 40% of GDP, while in developed economies like the US, it's closer to 70%.
The Chinese have some of the highest savings rates in the world:
• US @ 4%
• China @ 44%

https://x.com/TihoBrkan/status/1839931011200639151