Has China become uninvestable?

OPTIMISM about China’s reopening at the start of 2023 has fizzled out since the second quarter.

Issues ranging from high youth unemployment, to pressures in the real estate sector and lacklustre demand for China exports have eroded investor confidence, leading to a sell-off and underperformance of Chinese equities.

To date, most of the gains from the initial reopening have been wiped out. Coupled with the ongoing geopolitical tensions between China and the Western economies, many investors wonder if China has become uninvestable.