Chinese optimism on encouraging policy rhetoric

Property developer debt about 30% of GDP

clock • 4 min read
Jacob Mitchell of Antipodes Partners

Jacob Mitchell of Antipodes Partners

Economic activity in China has been lacklustre this year, due to relatively soft credit data, continued weakness in the property sector and a worrying surge in Covid-19 infection rates – which prompted lockdown in certain key provinces.

Despite this, they have been encouraged by a marked change in rhetoric and policy from the top echelon of the Chinese government, with suggestions monetary policy should be eased as required and moderate loan growth is needed to support the real economy. In addition, the authorities want property developer risk to be managed, while regulation around internet platforms needs to be swiftly completed for the stability and healthy development of the platform economy. Positive property reform agenda Residential real estate development directly accounts for about 10% of GDP, and the slowdown...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Asia

Daryl Liew, CIO at REYL Singapore.

REYL's Liew eyes return to overweight positions in Asian quality growth names

'It's a question of timing'

clock 28 June 2022 • 3 min read
Amazon shares are down 40% from its peak

Growth stock pickers feel like 'a kid in a candy shop'

'It is time to go shopping'

clock 22 June 2022 • 4 min read
Ian Hargreaves is a manager on the Invesco Asia trust

Invesco Asia trust puts cash to work in China

Acknowledges challenges of country

Kathleen Gallagher
clock 22 June 2022 • 3 min read