What’s going on here? China’s official purchasing managers’ index (PMI) rose to 50.5 in March, after the government showed off its talent for manufacturing a comeback. What does this mean? This PMI – measuring how busy the manufacturing industry was – showed the highest reading in a year, crossing the “50” point that separates expansion from contraction. That’s thanks to a steady stream of new orders, many of which came from the government’s spending push. And with the services and construction sectors playing along, too, it seems China’s economy may finally be headed toward its 5% growth target. That said, the job market leaves much to be desired – and US tariffs (expected to set in this week) could tie up China’s all-important export business. Still, investors seem cautiously optimistic – even edging the Chinese yuan a little higher. Why should I care? The bigger picture: Retail therapy does wonders. China’s luxury-loving shoppers had been keeping their designer purse strings tight. But they’re now spending at retailers again, with sales of beer and sportswear – the classic springtime duo – beating expectations. JPMorgan expects that to continue, upping its predictions for Chinese consumer discretionary stocks: nice-to-haves like cars, electronics, travel, and restaurants. The bank has especially high hopes that companies will be able to hike prices without turning off too many shoppers – particularly high-end local fashion and food brands. For markets: Tech moves fast – as do its investors. Investors had bought into China’s tech industry this year, drawn in by government policy changes and AI products smart enough to rival US ones. But – a fickle bunch – they’ve sent Hong Kong’s Hang Seng Tech index down over 12% since mid-March (though it is still up more than 20% for the year overall). Some of the blame can be pinned on US tariffs, but many investors simply pocketed their profit. The takeaway: Chinese tech firms have promise, but you have to be nimble to keep up. | 