Hopes for luxury goods market as China's retail sales surge in October

China's latest economic data showed recovery momentum in the world's second-largest economy, largely influenced by a range of recent stimulus measures.

October's retail sales growth stood out, rising 4.8% year-on-year - marking the strongest gain in eight months - while industrial production increased by 5.3%, though it missed the forecasted 5.5% rise. Additionally, home prices declined at a reduced rate, hinting that support for the housing market is taking effect.

The recent gains in retail sales and stabilisation in the property market are promising for China's economic outlook and could signal renewed demand for global exporters. China's consumer demand struggled under the weight of deflation and weakening imports, while a prolonged housing crisis undermined investment and consumer confidence. The uptick in retail sales and housing markets points to recovering domestic consumption and economic improvement.

The National Bureau of Statistics of China (NBS) noted: "With the accelerated implementation of the existing policies and the introduction of a raft of incremental policies in October, the national economy showed a stable growth trend, with major indicators recovering notably and positive factors accumulated."

Over the weekend, the National Bureau of Statistics (NBS) reported that China's Consumer Price Index (CPI) increased by 0.3% annually in October, a slight decrease from September's 0.4% rise.

Meanwhile, the Producer Price Index (PPI) dropped 2.9% year-on-year, indicating intensified deflation in manufacturing. Analysts suggested that the Golden National Week may have influenced these year-on-year readings, possibly masking the effects of recent stimulus policies. Additionally, core inflation, which excludes