“China faces a fork in the road, rely on the policies that have worked in the past, or reinvent itself for a new era of high-quality growth,” IMF head Kristalina Georgieva said at the China Development Forum on Sunday, Reuters reported. Georgieva urged China to implement policies to “reinvent itself,” including measures that would boost domestic consumption and production rates and end the country’s mounting property crisis.

By the numbers: A more domestic consumption-centered policy mix could add USD 3.5 tn to China’s economy over the next 15 years, but this depends on “boosting the spending power of individuals and families,” reducing risks from local government debt, and completing abandoned housing projects, Georgieva said.

The Chinese economic miracle no more? Foreign direct investment to the world’s factory in 2023 hit its lowest level in three decades on the back of slow post-pandemic recovery and the property crisis continuing to worsen with the country’s largest property developer defaulting on a USD bond in October. The slowdown in China also led credit rating agency Moody’s to downgrade its outlook on the country’s sovereign credit rating to negative from stable in December.

ALSO WORTH NOTING-

  • OQ Oman taps advisors to upcoming IPOs: Omani state-owned oil and gas player OQ has tapped HSBC to help list the company’s exploration and production arm that could raise a record USD 1 bn — a record for the country. Morgan Stanley will help list the company’s methanol and liquefied petroleum gas business. (Bloomberg)
  • Bahraini wealth fund takes overUK’s McLaren: Bahraini sovereign wealthfund Mumtalakat has become the sole owner of the UK’s supercar maker McLaren Group after increasing its share to 100% from 60%. (BBC)

Asian markets are in the red and US and European futures largely unchanged as traders look ahead to a holiday-shortened trading week. Dow, S&P, and Nasdaq futures were all down by fractions of a percentage point. The Kospi, Hang Seng, Nikkei, and Shanghai Composite were all (just) in the red at dispatch time this morning.

EGX30

29,060

0.0% (YTD: +16.7%)

USD (CBE)

Buy 46.51

Sell 46.61

USD at CIB

Buy 46.54

Sell 46.64

Interest rates CBE

27.25% deposit

28.25% lending

Tadawul

12,796

-0.3% (YTD: +6.9%)

ADX

9,322

+0.4% (YTD: -2.7%)

DFM

4,280

+0.1% (YTD: +5.4%)

S&P 500

5,234

-0.1% (YTD: +9.7%)

FTSE 100

7,931

+0.6% (YTD: +11.2%)

Euro Stoxx 50

5,031

-0.4% (YTD: +11.3%)

Brent crude

USD 85.43

-0.4%

Natural gas (Nymex)

USD 1.66

-1.4%

Gold

USD 2,181.60

-1.1%

BTC

USD 66,499.80

+2.4% (YTD: +50.3%)

THE CLOSING BELL-

The EGX30 was almost flat at today’s close on turnover of EGP 3.3 bn (33% below the 90-day average). Local investors were net buyers. The index is up 16.7% YTD.

In the green: E-finance (+10.3%), Fawry (+7.2%), and AMOC (+4.7%).

In the red: Elsewedy Electric (-4.6%), Talaat Moustafa Group (-4.2%), and Delta Sugar (-3.0%).

CORPORATE ACTIONS-

Talaat Moustafa Group will hand out a total EGP 453 mn in dividends to shareholders, according to an EGX disclosure (pdf).

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