Nonetheless, Wang believes that betting on China’s reopening recovery is still a valid investment theme. “China is definitely a topic you cannot avoid,” says Wang, in an interview with The Edge Singapore.
The much widely anticipated reopening growth of China has been spotty, with many market experts dialling back their bullish forecasts made just a couple of months ago.
Wang Yi, head of quantitative investment at CSOP Asset Management, notes that the recovery following the lifting of the pandemic curbs is “slower than expected”. Exports for May, for example, were down 7.5% y-o-y, a sharp reversal from the 8.5% growth chalked up for April. The drop took place amid a wider global slowdown as central banks indicated their intention to keep rates high in a bid to fight inflation.
