Prospects for consumption are dim while Covid-related disruption continues and consumption is pushed lower down the policy agenda.
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Leading policy advisers across the ideological spectrum to call for more aggressive actions to boost consumption and housing.
Official data confirms that the Chinese economy shrank in April, as covid and related restrictions hit the country hard.
China’s corporate sector mounted a comeback in Q1 after a lousy Q4, confirms data from non-financial A-share listed firms.
All indicators have pointed to a much more substantial deterioration in April. China’s situation is unlikely to normalize in May, making it very difficult to hit the target.
Liu He remains very influential, but bearish sentiment can hardly change unless real changes materialize or the top leader speaks out.
Long USD/CNH is an attractive bet now, as most indicators suggest that the RMB should weaken much more.
Foreign firms continued to receive more scrutiny than Chinese peers, especially in the semiconductor industry, as Beijing attempted to secure a stable supply.
April will be even worse than March, and the economic pain will last longer as the country struggles to control the highly transmissive variant.