Watch China for next steps on COVID-19
China’s recovery should be used by global markets as a sentiment tracker on how the country managed the COVID-19 crisis and protected its economy.
According to deVere Group, China was maintaining domestic stability and being involved in international talks on macroeconomic policy collaboration.
When COVID-19 struck China in January, the country took strong measures straight away and cases have since fallen, reporting no new cases recently.
deVere chief executive, Nigel Green, said: “Almost immediately, the Chinese authorities launched intense lockdown measures to try and halt the outbreak. It appears to have been successful, with cases having fallen considerably.
“However, the adverse impact on the world’s second-largest economy – which drives in a large part – the global economy - has been significant.
“As such investors around the world will now be looking at how China gets back on its feet economically. Did the extreme lockdown work? Were the public health facilities adequate? Will there be another outbreak as activity resumes? How will the authorities now kickstart the economy? How will these decisions and the success of them impact the rest of the world?”
He said now that cases had stabilised in China, it would be worthwhile assessing the fallout it had caused to the country and how its measures could be applied to other countries.
“What takes place in the People’s Republic will be used by investors as a sentiment guide and a gauge for the rest of the world, particularly the US and Europe where Covid-19 transmissions are yet to peak.”
AUTHOR
Laura Dew
Recommended for you
First Sentier Investors chief executive, Mark Steinberg, is set to depart the asset manager after seven years.
Metrics Credit Partners has completed the acquisition of Taurus Finance Group and BC Investment Group as it looks to launch consumer lending arm Navalo.
AMP has announced to the ASX that it is being sued by property fund manager Dexus regarding the sale of its real estate and domestic infrastructure equity business.
Having seen inflows of US$5.6 billion to its fixed income funds in the last quarter, Janus Henderson has closed on a deal with life insurer Guardian to secure funds to boost its product development.
