Ornamental lights decorate an empty street during lockdown in Shanghai on April 20. The Chinese government’s insistence on a “zero-tolerance” approach to Covid-19 is weighing on the economy as well as global sentiment. Photo: Reuters
Opinion
Opinion
Macroscope
China’s priority is stimulus and stability, not saving falling markets
- While there are no signs of panic selling, a bearish bet on China is the consensus view as Beijing is locked into its ‘dynamic zero-Covid’ approach
- Investors must accept that Beijing is as unwilling to relax its pandemic strategy as it is to loosen monetary and fiscal policy more aggressively
Ornamental lights decorate an empty street during lockdown in Shanghai on April 20. The Chinese government’s insistence on a “zero-tolerance” approach to Covid-19 is weighing on the economy as well as global sentiment. Photo: Reuters
