Citigroup Drops 3.32% on China GDP Growth Revision

On April 9, 2025, Citigroup's stock experienced a significant drop of 3.32% during pre-market trading, reflecting investor concerns and market volatility.

Citigroup has recently revised its forecast for China's GDP growth, lowering it from 4.7% to 4.2% for 2025. This adjustment comes amid rising external risks and heightened geopolitical tensions, which have diminished the likelihood of a U.S.-China agreement. The bank anticipates that domestic policies will focus more on expanding demand, with potential new financial support ranging from 1 to 1.5 trillion yuan. The People's Bank of China may also lower policy interest rates by 40 basis points and reduce the reserve requirement ratio by 100 basis points. However, challenges related to currency management and debt sustainability persist, prompting policymakers to retain flexibility for future economic challenges.