Mistrust of Xi Endangers One of Wall Street’s Favorite Trades
- The rally in China assets is stalling after quick easy gains
- Now Xi must try to persuade long-term investors to trust him
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After triggering a years-long exodus of foreign investors from Chinese markets, President Xi Jinping looked like he’d cracked the formula to revive his economy and lure back global funds.
China’s very public pivot away from Covid Zero late last year was accompanied by a speech from Xi impressing upon top officials the importance of attracting and retaining funds from abroad. Spoken behind the closed doors of the Central Economic Work Conference in December — and only released in full this month — the speech heralded a string of market-friendly reversals for hard-hit sectors like property and Big Tech — as well as a decisive shift in tone from regulators and state media.