The Business Times
business-time-50
Global Enterprise logo
BROUGHT TO YOU BYUOB logo
INVESTING GLOBALLY & PROFITABLY
·
SUBSCRIBERS

Buyers beware: China’s economic recovery may be painful and perilous

While a bullish consensus is building on Chinese equities, we believe a share price correction could be in the offing as growth fails to meet lofty expectations

google-preferred-sourceAdd BT as a preferred source
    • China’s current Covid-19 wave has been confined to the urban areas so far, with rural areas remaining largely unscathed. This is about to change.
    • China’s current Covid-19 wave has been confined to the urban areas so far, with rural areas remaining largely unscathed. This is about to change. PHOTO: AFP

    You Weiren

    Published Tue, Jan 31, 2023 · 04:04 PM

    CHINESE equities have been on a tear in 2023.

    Despite a tidal wave of fresh virus infections, the Chinese government has moved forward with its plans to dismantle the zero-Covid policy that it adhered to for the past three years. Markets welcomed the move. Investors rushed back into Chinese equities as they position for a sharp rebound in economic activity.

    Even though a bullish consensus is emerging for Chinese equities, we prefer to remain cautious as there are reasons to believe that the recent rally may not last.

    Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

    Investing Globally & ProfitablyChina stocksSpotlight

    Share with us your feedback on BT's products and services

    Feedback

    TRENDING NOW

    Longest-serving chief minister Taib Mahmud’s legacy looms large over Sarawak as a family feud over his estate threatens to expose skeleton’s in the eastern state’s political closet.

    On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart

    Thailand’s target is to export seven million tonnes of rice globally in 2026, but the Middle East war has turned the world topsy-turvy with supply disruptions, high oil prices and economic uncertainty.

    Thai and Vietnamese farmers may stop planting rice because of the Iran war. Here’s why

    Dubai has assembled a powerful formula for attracting wealth, but the ongoing Gulf conflict has put geopolitical risk back at the centre of investors' minds.

    As war unsettles the Gulf, wealthy families reassess where to place capital and relocate

    From December 2021 to December 2024, private hospital IP premiums have been rising at an average annual rate of 8.6%.

    MOH addressing rising healthcare costs, but cannot control commercial insurance decisions: Rahayu Mahzam

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More