News analysis

Market exuberance over China’s Covid-19 pivot needs to be balanced with caution

People at a Christmas market in Shanghai on Dec 24, 2022. PHOTO: REUTERS
New: Gift this subscriber-only story to your friends and family

SINGAPORE – China’s move away from its zero-Covid policy has sparked predictable excitement among Wall Street financial firms looking for new opportunities amid a global slowdown, but the hoped-for boom may be some way off.

The consensus view is that a burst in domestic consumption will power growth of as much as 5 per cent in the Chinese economy in 2023 and lead to sizeable gains in the Shanghai and Shenzhen stock exchanges.

Already a subscriber? 

Read the full story and more at $9.90/month

Get exclusive reports and insights with more than 500 subscriber-only articles every month

Unlock these benefits

  • All subscriber-only content on ST app and

  • Easy access any time via ST app on 1 mobile device

  • E-paper with 2-week archive so you won't miss out on content that matters to you

Join ST's Telegram channel and get the latest breaking news delivered to you.