Macro Minutes: Current Developments in Chinese Markets

Key Points

  • China has been “first in, first out” of the COVID-crisis. Growth quickly recovered and should return to its pre-COVID trend providing a good roadmap for the rest of the world.
  • Policy is normalising, not tightening significantly, which suggests a still positive backdrop for equities. Recent regulatory concerns are also likely overblown.
  • We believe growth categories will resume leadership for global and Chinese equities.
Investing in financial markets involves a risk of loss and there is no guarantee that all or any invested capital will be repaid. Past performance neither guarantees nor reliably indicates future performance. The value of investments and the income from them will fluctuate with world financial markets and international currency exchange rates.