During expansions, equity prices tend to rise, although they often decline before a downturn in the economy. Discerning a consistent pattern for the saving rate during an expansion from the chart is more difficult: too many other factors play a role. But regression analysis indicates that the saving rate tends to move countercyclically.
China’s financial sector has provided strong support to COVID-19 response since last year and served as a backstop to China’s fast economic recovery. The development of Shanghai as an international financial center has also seen new progress.