FAST FIVE: China Bulls Look To A Future That No Longer Exists
China Bulls Look To A Future That No Longer Exists By Garfield Reynolds, Bloomberg Markets Live reporter and analyst China's economy reached extraordinary peaks before Covid struck and investors still expect big things from the Asian behemoth.
The country faces a sustained slowdown both as the industrial and property booms have left it weighed down, but also because the demographic picture has shifted markedly against it This point bears underlining because there are no quick, ready fixes.
Slower growth and more opaque outcomes are the most likely paths forward.
We can expect the yuan to stay weaker as a result, something that will lessen the potential for the dollar to drop too far from its recent peak, especially if a more lethargic China economy ends up contributing to a stagflationary global environment.
Any reopening will be gradual, especially given the potential flagged by Bloomberg Intelligence for 360 million new infections.