China at a crossroads and the economic path forward – Catherine Yeung

Today we check back in with Investment Director Catherine Yeung who is located in Hong Kong. She discusses China’s current investment landscape and what investors should be keeping in mind for the rest of 2023. Catherine says China’s economy is on shaky ground right now, but she believes headline news is driving sentiment rather than the actual details. China’s growth has been slower than expected, but Catherine says we need to reset expectations. This recovery isn’t like previous recoveries she points out, the reason being is that policy is different this time around. Each cabinet from a government perspective has been told to focus on growth. But, it’s a different type of growth - it’s a moderate measured growth. So investors need to be patient, Catherine suggests. She also says in other countries around the world, policy response has been quite aggressive. The Chinese have taken a step back and are being very moderate. There’s no golden solution to China’s situation. Catherine says it’s really about ensuring that confidence is restored in China, both from a consumer perspective as well as a corporate perspective. Catherine also touches upon the recent real estate headlines as well as updates us on China’s growth, trade relations and the impact of regulatory and policy changes in the country.

Recorded on August 16, 2023.

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