Sell The state of China's economy in a graph of luxury watches

      Luxury brands in China are faced with an alarming trifecta.

1 The policy replaced "gifts" at the beginning of the year, as citizens increasingly frustrated by corruption in public. 2 The impact of the economic slowdown on consumption. 3 Chinese people travel more, and their luxury purchases abroad, to benefit from lower currency and lower taxes.

Swiss watches are hard enough. In May, China said it would cut import taxes on Swiss observed by 60% over 10 years after the two countries established a free trade agreement.

In a new report, Francesca Di Pasqua Tonio wrote Deutsche Bank that "destocking in China is not yet complete."

"The results of our analysis show that exports should hold quite well worldwide in an environment at the request of standardization, we see destocking in China is not yet complete, and provided poor sale in Q2 by industry players available in the light of further information , we do not see a pick-up in the supply of that region shortly.

"But if the demand normalizes, has a significant positive impact on the supply side must be reported., It could happen sooner for other categories of luxury spending, but in our opinion, it will take some more time for the watch industry.

Watches Swiss watch exports to Greater China, including Hong Kong, which 28% of Swiss watch exports. This indicator luxury, if you will, is China slowing down the recording from May 2012 to China, and in September 2012 in Hong Kong.