Investors’ route to post-COVID China is via Europe

News Snapshot:

Investors are getting more bang for their buck this year by buying European companies with a focus on China than buying Chinese companies themselves, a sign of the unevenness of China’s pandemic recovery and geopolitical concerns. Late last year, China dismantled its strict zero-COVID policy, helping its economy rebound by a faster-than-expected 4.5% in the first quarter of 2023. The recovery has been patchy, however. Pent-up consumer demand has boosted the services sector, but manufacturing has lagged. Property and tech have been bruised by regulatory crack-downs, indebted local governments have little spare cash to spend, and youth unemployment is well...