KBND - Recovery Road Map In The Year Of The Dragon

2024-02-04 03:35:00 ET

Summary

• Strength has been noticeably absent in China’s equity market over the past year, with the market under significant downward pressure due to weakness in the real estate sector and slower consumer spending.
• One of the biggest policy challenges in recent years has been poor communication of regulations and reversing those that are deemed too aggressive by the market.
• In our view, raising the share of consumption as a share of GDP through the policies and reforms we outline as well as improved regulation and corporate governance should help create a solid foundation for a sustained recovery in China’s equity markets.

The upcoming lunar year features the dragon in the Chinese Zodiac. It is recognized as one of the most auspicious signs, incorporating luck, strength, and health. People born under this sign are viewed as strong, generous, and full of vitality. Strength has been noticeably absent in China’s equity market over the past year, with the market under significant downward pressure due to weakness in the real estate sector and slower consumer spending....

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