China's long-awaited post-Covid recovery is faltering as the world's second-largest economy faces growing deflationary pressure, a property-market crisis, sluggish growth and record-high youth unemployment — erecting a maze of obstacles for the Club's holdings that are most exposed. But we still think a Chinese economic rebound is on the horizon. And, in the meantime, our China-focused names are poised to ride out the storm, while finding alternate routes to growth.
China's long-awaited post-Covid recovery is faltering as the world's second-largest economy faces growing deflationary pressure, a property-market crisis, sluggish growth and record-high youth unemployment — erecting a maze of obstacles for the Club's holdings that are most exposed.