Article

Peace, love and prosperity

3 December 2021
David Chao
David Chao
Global Market Strategist, Asia-Pacific
Peace, love and prosperity
Paris, France

Largely unheard of just a year ago, ‘common prosperity’ is the 2021 buzzword for China markets. 

The term was mentioned by over 70 major Chinese companies in their latest earnings announcements and by President Xi Jinping in over 60 speeches year to date, up from 30 in 2020 and just six in 2019. 

Common prosperity is the latest in a series of political priorities articulated by President Xi – dual circulation, environmental protection and family values among others – driving major shifts in Chinese markets.    

Figure 1. Wealth inequality has started to level out in China

Source: Credit Suisse. Data as of 2020. The Gini Index is a measure of statistical dispersion which represents the wealth inequality within a nation.

Figure 2. Rural-urban income gap needs to be narrowed further

Source: China NBS. Data as of 2020.

Figure 3. China’s GDP per capita PPP has expanded rapidly relative to EM peers

Source: IMF. Data as of 2019.

Figure 4. China has managed to eliminate ‘absolute poverty’

Source: China NBS. Data as of 2020.

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