Investors remain optimistic about the reopening of China’s economy following its Covid lockdown, according to a Bloomberg survey.
While US-listed Chinese companies saw gains of up to 80% since late October and Mainland companies listed in Hong Kong increased by almost 60% in the same period, these gains are starting to fade.
Professional and retail investors are concerned about the geopolitical risks, potential government regulations, and Xi Jinping’s recent moves to tighten his grip on the government.
However, they still believe that the rally has some room to run thanks to expectations of improving economic data and potential government stimulus.
Most investors say China will exceed its conservative economic growth target of 5.5%.
Nonetheless, domestic regulations are an even greater risk than worsening ties with the US, and wildcard risks include anything from social uprisings to a military clash over Taiwan or China arming Russian troops in Ukraine.
