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
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
