Morgan Stanley Economist: China Real Estate Adjustments Near End, Gold's Long-Term Allocation Value Rising

According to Morgan Stanley Chief China Economist Evan Xing, speaking recently, China's real estate adjustments may be gradually approaching an end. Development investment has declined to just over 5% of GDP from a 2021 peak, compared with approximately 7% in the U.S. and 6% in Japan, suggesting the sector's correction phase could be winding down.

Xing also highlighted gold's rising long-term allocation value. Global central banks' gold holdings have just exceeded $4 trillion, surpassing total U.S. Treasury holdings. However, many countries hold gold at less than 20% of their foreign exchange reserves, indicating room for further increases as central banks and sovereign wealth funds gradually expand gold allocation ratios.