, Columnist
Is the Great China Covid Reopening a Myth or a Must?
Beijing is at risk of raising the debt ceiling and ruining its relatively clean balance sheet. That’s quite a price to pay.
Lockdown life.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
In recent days, investors bought up the yuan, copper and Chinese stocks largely on unconfirmed social media posts that Beijing is considering an exit from its stringent Covid-Zero policy. Their enthusiasm was barely dented by stern comments last weekend from officials at the National Health Commission, who pledged to “unswervingly” adhere to the government’s virus controls.
It’s a trillion dollar question. The entire market is now playing a guessing game and acting on it. So is China reopening a myth?