Guide to China 2Q 2023
What will it take for Chinese markets to better reflect China's reopening?
Following China's policy pendulum shift towards pro-growth measures late last year, Chinese equities rebounded 60% from late October to late January. Since then, however, they have corrected 16% despite stronger than expected economic activity in China due to the reopening. As such, investors wonder: what will it take for Chinese markets to take off again? Or is the better way to invest in China's recovery through indirect beneficiaries? Key issues for investors to consider include:
- Tracking the impact of China's reopened economy on China's economy and earnings
- Gauging the effect on confidence of China's policy pendulum shift towards pro-growth measures
- Pricing in ongoing geopolitical tensions between China and the U.S.
- Monitoring potential bills in Congress and/or Executive Action that could impact global investors' ability to invest in China's private and public markets