Macro Minutes: China: Reasons for Optimism

In our latest Macro Minutes video, Portfolio Engineer Austin Fraser discusses Fisher Investments’ optimistic views of China’s equity markets and examines the catalysts behind China’s positive performance, despite global, developed, and emerging equity markets’ negative performance.

Key Points

• The Chinese government has backed off its regulatory push that weighed heavily on sentiment since last year, removing a major headwind for equities moving forward.
• The Chinese government is actively stimulating and supporting the economy ahead of the National Party Congress this fall.
• History suggests a relatively quick economic recovery following the lifting of COVID-restrictions, and China’s June economic activity provided early signs of a rebound.