China economy

China will be one of the few countries growing in 2020 amid a global recession.

Across the world, investors and non-investors alike are focused on when and how economies will “reopen” after Covid-19 related shutdowns.

What was once perhaps unthinkable must now be included in our immediate investment and business calculations. China is not sitting back in the face of this bully behaviour, so the investment horizon is still wide.

overnments around the world are giving priority to measures that limit the spread of disease and save lives, including the complete lockdown of a region (as in China) and even of entire countries (Italy, Spain, and France, for example).

Yu Xiaobo, investment director and head of China business for Value Partners, explains why Chinese stocks offer a compelling opportunity at this time

Restoring business connections will take time and effort to rebuild the levels of trust that prevailed prior to the Covid-19 crisis.

In China, leaders are beginning to talk up the prospects for a rapid economic rebound as the spread of the disease appears to be under control.

It is also important to look beyond the immediate crisis because there are likely to be substantial changes to come from this pandemic.

It’s good news that after almost two months of containment the number of contagious people is down. But a recent analysis on the Covid-19 epidemic suggests that the virus is still persistent.

Post-Covid-19 China business and investment opportunities are related to the strength of the Chinese consumer market rather than infrastructure.