Free | Global Macro & Strategy

Macro in a Minute: China recovery continues to put COVID in the rear view

The latest high frequency data out of China this week has confirmed  that China’s economic recovery remains on track.

Retail sales were up +4.3% YoY in October, and is the 3rd consecutive monthly increase. Industrial output was up +6.9% YoY, fixed asset investment increased +1.8%, and the jobless rate fell to 5.3%.

Now whilst none of this is earth shattering stuff, it just re-affirms the story that China has put the COVID pandemic well and truly behind them, whilst Europe and the US are still battling the worst of outbreaks. Of course, the latter presents itself as a risk that reduced demand in these Western countries may lead to reduced Chinese exports, however there are no signs of this just yet. Looking forward, China has one of the best economic outlooks of all major countries.

If it suits their investment strategy, investors can gain direct exposure to China via ETFs and managed funds. Members can use the ‘search’ function in the ETF and Managed Funds sections of the Investment Research tab in the Members Research Portal to find information on investment options with direct exposure to China. Alternatively, Emerging Markets ETFs and funds also generally have a high weighting to China.

Author: Graham Parkes

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