“Visibility over the evolution of China’s zero-Covid policy is low and recent messaging has suggested virus containment remains a top policy priority of the country,” said Adam Montanaro, investment director of global emerging markets equities at abrdn. “Not only do investors hate uncertainty, but the negative economic impact of this policy are increasingly visible.”
against another US congressional visit less than two weeks after House Speaker Nancy Pelosi traveled to Taipei. Beijing claims the island as its territory.Market sentiment is weak because Chinese investors “are fearful that war with the U.S. could break out and new variants of Covid will result in additional restrictions,” said Mark Mobius, co-founder of Mobius Capital Partners. Chinese stocks would only recover when Beijing has addressed these two concerns, he added.
“The biggest near-term risk to Chinese growth is its dynamic Covid-zero policy, which is offsetting the positive effects of Beijing’s cautious policy easing,” said Jessica Tea, senior investment specialist for Greater China equities at BNP Paribas Asset Management. “China would need to see further fiscal stimulus in order to help stabilize its GDP growth, and ultimately restore more confidence in the market.
The consensus 12-month earnings forecast for the Hang Seng China Enterprises Index has fallen to the lowest since 2009, according to data compiled by Bloomberg. Of the MSCI China Index companies that have announced second-quarter results, at least a third of them missed analysts’ estimates.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Poor Chinese data weighs on emerging-market currenciesNew Covid-19 outbreaks across China in July weighed on consumer and business spending
Source: BDliveSA - 🏆 12. / 63 Read more »
Source: dailymaverick - 🏆 3. / 84 Read more »