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Xi’s Price-War Campaign Creates a Buzz in China’s Stock Market
Chinese President Xi Jinping’s push to promote price competition across various sectors is creating significant movement in China’s stock market. Dubbed a “price-war campaign,” the initiative encourages companies—particularly in consumer goods, electric vehicles, and technology—to lower prices in a bid to stimulate domestic consumption and compete globally.
MARKETS
7/13/20251 min read
The campaign has sparked optimism among retail investors, leading to a surge in trading volumes and renewed confidence in consumer-related stocks. Sectors like EVs, solar panels, and home appliances have seen sharp stock price swings as investors bet on winners and losers of this competitive drive.
While some analysts warn that margin pressure could affect company profitability, others believe the broader goal is to revive economic momentum and bolster household purchasing power—a key objective for the Chinese government amid slower-than-expected post-COVID growth.