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China Rapid Rebound Thesis Tested as Virus Fallout Deepens

  • Markets expect a quick economic recovery if virus contained
  • But significant curbs on work and travel remain in place
A closed store in Beijing on Feb. 12.

A closed store in Beijing on Feb. 12.

Photographer: Greg baker/AFP via Getty Images 

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Economists are turning more pessimistic over the chances of a speedy recovery for China’s virus-hit economy, as evidence mounts that the disruption will be deeper and more long-lasting than first thought.

With factories struggling to re-open amid curbs on movement, consumers housebound and global supply chains fraying, analysts from Citigroup Inc., Nomura Holdings Inc., Gavekal Research are among those signaling deeper concern than their initial estimates. That’s even amid signs that the spread of the disease is slowing.