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

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.