China Is Roaring Back + Important Weekend Ahead – The Average Joe

    China Is Roaring Back + Important Weekend Ahead

    Victor Lei — Head of Research

    March 1, 2023

    March 1, 2023

    Flashback: Last December, China finally shifted away from its zero-COVID policy — following the rest of the world.

    This year, China is really embracing the Year of the Rabbit.

    February economic data jumped to a strong start:

    • Manufacturing grew at the fastest pace in over a decade.
    • China’s home sales rose for the first time in 20 months.
    • Services activity grew stronger than expected.

    China is trying to increase domestic demand for goods and services after a near three-year lockdown dragged its economy down.

    President Xi has pledged to increase resident income, focusing on low and middle-income households.

    China’s National People’s Congress kicks off this weekend.

    • Economists expect China to announce a GDP growth target of around 5% — higher than last year’s 3%.
    • China bulls anticipate positive policy announcements.

    The Invesco Golden Dragon China ETF (NASDAQ:PGJ) — a basket of US-traded Chinese stocks — has soared since last October.

    The Chief Investment Officer of Kamet Capital Partners thinks “a lot of the selling was done in February” and that “things are coming back in a strong way” (BBG).

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