J.P. Morgan AM: China could see consumption-led recovery

J.P. Morgan AM: China could see consumption-led recovery

China
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China's reversal of its zero-Covid policy may lead to a significant boost to domestic consumption this year, helping to fuel the recovery in the world's second largest economy.

In 2022, Chinese households saved a record $ 2.5 trillion as stringent Covid restrictions limited households' ability to spend. As we have seen in the West, as economies re-open, a wave of pent-up demand is released and consumers increase their discretionary spending, particularly in service sectors such as hospitality and entertainment. So while 2022 was a challenging year for Chinese equities, we think that a strong consumption-led recovery could drive better performance this year.

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