China's Growth Opportunities and Offshore Investing
COVID policy - The beginning of the end
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China has been forced to give up COVID-zero because of heightened economic costs and challenges to local enforcement.
The rapid and large exit wave shall be followed by a fast economic activity recovery for a relatively extended period of time.
Companies with lean cost / strong pricing power are the preferred plays for re-opening.
China has exited the "exit wave"...
Baidu pandemic index - National
and on the way of recovery
Subway traffic index (29 cities)
Index, GDP weighted, 7dma
Million, both scales
350
300
250
200
150
100
50
0
COVID search
Online health inquiry (RHS)
Dec 21
100
40
35
90
30
80
- 25
70
- 20
60
15
10
50
5
40
30
+
+
+
+
Jan 22
Mar 22
May 22
Jul 22
Sep 22
Nov 22
Jan 23
Source: (LHS) Baidu, J.P. Morgan. Data as on 10 Jan 2023; (RHS) Source: Wind, J.P.Morgan. Data as on 09 Jan 2023.
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