Is China Investable Again After a Chaotic Reopening?
The nation is returning to business, but Beijing’s hard-to-read policymaking means that global investors need to tread carefully.
Open for business.
Photographer: Qilai Shen/BloombergForeigners have taken to looking at China with deep skepticism. Geopolitical tensions over Taiwan, harsh regulatory crackdowns, as well as a stringent Covid-Zero policy that put its economy to a standstill raised the argument over the past year that China is no longer “investable.”
But the investment thesis for China is looking up again. Beijing’s Covid policy reboot in early December is now putting its population on the same footing as the rest of the world. With an estimated 37 million daily infections at the peak, China’s big cities already have hit herd immunity. New Year crowds are back on the street, and we might expect some revenge consumption to kickstart the economy.