After a difficult few years coming out of the Covid-19 pandemic, the Chinese economy’s starting to show some signs of life. And I think that could be a very positive sign for a couple of UK shares. One is mining giant ( ) and the other is beleaguered fashion house ( ).
I think it could be worth keeping an eye on both in October. China China’s been struggling economically over the last few years, for a number of reasons. These include high debt levels, tough Covid-19 lockdowns, and strained relations with the US.
Recently though, there are some signs that the economy is starting to turn the corner. Vehicle registration data from the start of September has been encouraging, especially for . Around 31,800 new Teslas were registered during the first two weeks of September.
That’s a significant increase on the first two weeks of August, where the number was 28,000. Investors have been taking this as an indication that things might be about to look up for the US car/AI/robotics company. But I think it could also be a positive sign for some UK stocks.
Rio Tinto Rio Tinto’s chief product is iron ore and its largest market – by some margin – is China. In 2021, the company generated around 57% of its revenues in the region. Since then however, sales have fallen from just over $36bn to around $32bn, causing a 6% decline in overall .
As a result, the stock’s underperformed the FTSE 100 since the start of 2021. That’s a good reminder for investors of the risk of having a h.
