Consumers in Chinese cities are building up savings despite the struggling economy and are increasingly favoring local brands when they shop, according to a new report by McKinsey. The nationwide survey by McKinsey in China was conducted last summer, and more than 6,700 Chinese consumers took part in it. Are there opportunities for better investments in China? How will it affect the foreign exchange market and the USD in particular?

Even though the confidence of Chinese consumers was at its lowest, almost half of the respondents were optimistic about China’s economic recovery after the pandemic. Respondents in similar surveys in India and Indonesia were even more optimistic, while respondents in developed markets, including the U.S. and Germany, were much more pessimistic.

Is it safe to invest in Chip? Investors betting on China’s growth are hopeful that the so-called pent-up demand situation will boost spending amid a gradual recovery in economic activity.

Earlier, we reported that U.S. stock market indices were down 1-2%.