Macro Minutes: China: Reasons for Optimism

Key Points

• The Chinese government has backed off its regulatory push that weighed heavily on sentiment since last year, removing a major headwind for equities moving forward.
• The Chinese government is actively stimulating and supporting the economy ahead of the National Party Congress this fall.
• History suggests a relatively quick economic recovery following the lifting of COVID-restrictions, and China’s June economic activity provided early signs of a rebound.