At the end of 2022, China dropped nearly all Covid restrictions. Concerns about the property market, regulation, economic policy and China’s international relations have also eased.
Consumer spending is set to rebound and so cheap valuations, accelerating growth and international investors' low equity exposure mean we should look again seriously at the world's second largest economy. Structural themes in China Investors should target structural growth themes in China, in order to help identify companies which can grow earnings faster than the market. Some of the dynamics within these themes include: Rise of middle class - consumption was weak in 2022 due to lockdowns, but on the other hand, savings have accumulated so we are expecting a sharp rebound in con...
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