China Bulls Have Got It Wrong as Covid Zero Stays, Lombard Says


Key Topics in this News Article:

News Snapshot:

(Bloomberg) -- Investors who are betting on a sustained rebound in Chinese equities are getting ahead of themselves, according to TS Lombard. The optimism surrounding China’s shares is growing but the nation’s Covid Zero policy remains a drag as it curbs consumer spending, which is a key driver of growth, analysts Larry Brainard and Jon Harrison wrote in a note Monday. The firm lowered its call on Chinese stocks to neutral from moderately positive. The recent recovery in China’s shares has spurred debate on whether the worst is over after the authorities pledged to ease up on a tech crackdown...