Guide to China 4Q 2021
China has been a daily fixture in the headlines this year, from regulations of the internet sector to trouble with a large property developer to rising coal prices. As a result, 3Q economic growth has decelerated and volatility in Chinese equity and corporate bond markets has picked up significantly. Looking towards 2022 and beyond, investors will need to consider the following questions:
- How will China manage the slowdown in housing and its energy crisis?
- Can China put a floor on economic growth?
- Will monetary and fiscal policy be eased further?
- How do all of this year’s reforms and regulations fit together?
- Does China’s goal of “common prosperity” threaten private capital and foreign investment?
- When will the equity market find its footing?
- Where are the opportunities in Chinese equities and fixed income?
- How can investors balance the risks and opportunities of ESG considerations when investing in China?