Latest China analysis: What happens next?

November 2022

 
We have published a new analysis about China and its equity markets following the recent Party Congress Meeting and as we head into 2023.

We have published a new analysis about China and its equity markets following the recent Party Congress Meeting and as we head into 2023.

You can read the full report here.

A few highlights:

  • While a slow decoupling with the West has been happening for some time, it is not expected to be absolute. However, there will be a new paradigm for China’s development for the foreseeable future in which the local economy and certain key industries will play a significant role in the country’s growth that will supersede previous growth engines, such as foreign direct investing, low-cost manufacturing and, to a limited degree, fixed asset investment.
  • Possibility we’ll see an acceleration of company delistings from U.S. exchanges, and with them a possible transfer of value from offshore to onshore shareholders.
  • Despite some new headwinds, China is too big to ignore. Its domestic markets are too large and liquid, and its growth—even when it runs below trend—still accounts for about one third of global growth.

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