China was the first major economy to experience a large number of COVID-19 infections, but it has also been the first major economy to largely re-open, with the pandemic more or less under control. In this new CIO Special we identify China’s economic recovery and the investment opportunities post COVID-19.
In addition, we look at:
- Following the National People’s Congress, we expect more fiscal and monetary measures to support domestic growth, particularly in infrastructure investment and household consumption areas.
- China‘s relatively fast recovery could add to its investor appeal in coming quarters. We remain broadly constructive on Chinese equities and Chinese credit, but a flexible and proactive approach will be necessary.
- The key market risk is the development of U.S.-China relations in the run up the U.S. presidential elections later this year. The focus of these tensions may change, broadening out from merchandise trade and into other areas.