“Consumers returned to restaurants and cinemas but largely refrained from big-ticket purchases. Consumer confidence data highlighted this negativity,” says Ronald Temple, chief market strategist at investment advisory firm Lazard.
The anticipated rebound following China’s reopening did not materialise as expected when the country lifted most pandemic restrictions earlier this year. Some optimists had even wagered on China leading the global recovery or playing a role in curbing global inflation through its cost-effective production capacity.
After the initial few months of euphoria — which, in hindsight, was premature — Chinese and Hong Kong markets began to mirror the more realistic and sobering reality. “The year following China’s reopening from Covid-19 unfolded as a story of dashed hopes,” says DBS.
