China Update: In time of trouble, go with the flow of government money
A new round of COVID outbreaks and a stringent pandemic control policy have dampened the growth outlook in China. In anticipation of the rolling out of massive infrastructure construction by the Chinese government to boost the economy, we look at the investment opportunities in the traditional an new infrastructure space. We also consider the medium-term cases for growth in hydrogen energy and cybersecurity.
China Update: a swamp of weak economic data for April; light in the tunnel for the Shanghai lockdown; stern warning against private capital.
China released a series of very weak credit and economic data which pointed to contraction in economic activities in April. On the positive side, there is finally light in the tunnel for Shanghai to emerge from lockdown in June. The April data was history and the determining factor for the pace of growth of the Chinese economy to a large extent lies on the development of the Covid outbreaks and lockdown. Qiushi Journal’s publication of new excerpts from an old speech of President Xi highlighted the priority of regulating private capital in the Chinese authorities’ agenda.