Is China's Crisis an Investment Opportunity? - Part 2

Policy Implementation and Potential Investment Risks

Last week we published the first of our 3-part series on the potential investment opportunity in China covering the general economic landscape.

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Here’s a quick recap of the previous article.

The reasons behind China’s increase in stimulus measures come down to the following factors:

• COVID lockdowns have significantly slowed the economy

• Aggressive regulation has undermined some of China’s key businesses, especially in technology and entertainment

• The end of the last credit cycle became a drag as tighter monetary policy increased the cost of capital and as a result created a drag effect on economic growth

• Slack from a structural overhang in real estate development continues to act as gravity, pulling down momentum

• The Chinese real estate market is the largest market in the world of any kind, weighing in at $90 trillion.

And now onto the second part of the article covering the monetary and fiscal policies of the Country and the potential risks of investing in China.