China Growth Slows While Stocks Rally and ETFs Surge

China reported its slowest quarterly GDP growth since 2022 on July 15, 2026, with real GDP expanding just 1.3% quarter-over-quarter, below expectations. Yet Chinese stocks, as measured by the FXI ETF, have rallied 3.1% over the past week, diverging sharply from emerging market peers. Lucas and Luna unpack this puzzle: why are markets cheering weak growth? They trace the logic through Beijing's stimulus whispers, the deflating property sector, and the fading yen carry trade that had weighed on Chinese equities. They also connect the resilience of the yuan—holding at 6.78 per dollar—to the rally, arguing that currency stability is acting as a tailwind for foreign inflows. Along the way, they compare China's predicament to South Korea's 11% weekly crash in the EWY ETF, showing how different economies are navigating the same global headwinds. A focused, data-driven look at why China's slowdown isn't spooking its stock market—at least not yet. #China #GDP #Stimulus #EmergingMarkets #Yuan #FXIRally #EWYCrash #SouthKorea #GlobalEconomy #CentralBank #TradeWar #CarryTrade #Property #Investment #Economics #FexingoBusiness #BusinessPodcast #GlobalMarkets Keep every episode free: buymeacoffee.com/fexingo