Star Macro Fund Casts Doubt on Key Theme of China Stock Rally
- Banxia says consumption stocks could trail expectations
- Traders are betting household spending will power China growth
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A top-performing Chinese macro hedge fund is warning that any pickup in the nation’s consumer spending will be mild, casting doubt on a key theme many investors expect will fuel a stock market rally this year.
Expecting a strong recovery in China’s consumption after the dismantling of its Covid curbs based on what happened overseas is “problematic,” Shanghai Banxia Investment Management Center, which manages more than 10 billion yuan ($1.5 billion), said in its December investor letter.