China’s twice-a-decade Communist Party congress may fail to give equity markets a boost this time around as Covid restrictions and a property market slump add to pressures on the economy, according to Goldman Sachs Group Inc.
Growth momentum has been historically strong in the run up to the key political event, but “it’s uncertain whether the historical precedents will be valid” for the Oct. 16 gathering, wrote strategists including Kinger Lau. Goldman expects China’s Zero Covid policy, which has been offsetting the impact of policy easing measures, to stay until the second quarter of 2023.
