Guide to China 3Q 2022
Can China's economy pick up steam in the second half?
While the rest of the global economy is slowing down at mid-year and investors wonder whether there's a global recession ahead, China's economy has already been decelerating rapidly for over a year and the main question for investors is whether China can maintain its recent re-acceleration. Should it succeed, the global economy would be able to count on an important growth engine and global markets could see significant outperformance in Chinese and emerging markets. Three key questions will shape the outlook:
- Can China avoid paralyzing its economy with its "zero-COVID" stance?
- Can Chinese policymakers prevent a housing meltdown?
- Can investors regain confidence that the rewards of investing in China outweighs the risks?