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Foreign Investors Fleeing China – The Economist

Prolonged Covid lockdowns, plus the serious housing market downturn has foreign investors questioning if China is losing its pragmatic approach to managing the economy”, report says


China's economy has suffered amid ongoing lockdowns, the government is working to boost job growth.
Covid lockdowns in cities such as Shanghai, seen here, have hammered small businesses far and wide in China. Photo: Reuters.

 

Uncompromising Covid lockdowns, plus the serious downturn in the country’s housing market “has led foreign fund managers to question whether China is losing its pragmatic approach to managing the economy,” a report in The Economist has said, noting that that foreign investors fear “a grand policy disaster” and a more ideological future.

The report said President Xi’s policies of prolonged lockdowns, backing for Russia and the timing of its tech and property crackdowns have knocked $2 trillion off the value of Chinese shares in Hong Kong and New York and spurred foreigners to drop $150bn of Chinese assets in the first quarter of this year.

Read the full report: The Economist.

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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