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China in Danger of Exporting Fresh Inflation Turmoil: MLIV Pulse

  • Majority of survey respondents say Covid-zero policy to remain
  • Chinese stocks seen trailing developed-world peers this year
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WATCH: This week’s survey is focused on the Chinese economy, what investors anticipate on covid-zero policy & its impact on markets.Source: Bloomberg
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China’s Covid-zero strategy is set to stay in place for the rest of the year, intensifying the world’s supply-chain woes and challenging efforts by central bankers to rein in inflation that’s running at multi-decade highs.

While there are signs that China’s Covid outbreak is waning and some of the strictest controls are being rolled back, the takeaway from the latest MLIV Pulse survey was that a majority of 540 participants projecting Beijing will stand firm on the severe lockdown polices. The measures have disrupted the supply of everything from Adidas sneakers and Rolls-Royce cars to Nvidia computer chips.