Beijing reopens but does not seem ready at all, and investors are alarmed

Asian stock markets reacted badly to the decision by Chinese authorities to reopen its borders in January. “In the near term, I believe China’s economy is set to experience chaos rather than improvement,” said chief analyst at Loomis Sayles

China confuses investors. Except Hong Kong one, yesterday the Asian stock markets reacted badly to the decision of the Beijing authorities to reopen the borders in January. The news itself is good but it was announced as the country is in the throes of an unprecedented wave of Covid, with hospitals collapsing. This suggests that the economic recovery is still far off despite the step back on the regulatory restrictions that have suffocated entire sectors of the economy in the last year and a half. So there are those who see China as a potential destabilizing factor for global markets, perhaps even more than the Russo-Ukrainian war.