How Much Can a Panda Bear
- Mar 26, 2021
- 3 min read
Updated: Aug 17, 2023
China’s Shanghai Composite Index is down by a non-trivial 15% from the February peak (chart 1). The big picture question is whether the decline is corrective or the start of something much deeper? From a macro perspective, China was first into the COVID crisis and was also the first to recover. The recovery in China’s activity data was distinctly V-shaped. However, the market is relatively expensive in a regional context and regulatory changes for sectors like internet have been a negative surprise. US-China trade tensions have also escalated again in recent weeks.
