Dec 7 (Reuters) – China on Wednesday announced the most drastic change to its zero-covid-19 policy since the outbreak began three years ago, lifting rules that had halted the spread of the virus. virus but disrupted the world’s second-largest economy and fueled protests. .
The relaxation of the rules, including allowing sick or asymptomatic people to stay at home and reducing testing for people traveling within the country, is the strongest signal yet provided by Beijing. 1.4 billion people live with the disease.
Here’s what people are saying about China’s recent efforts to contain the COVID-19 pandemic:
CHI LO, SENIOR MARKET PLANNER, ASIA PACIFIC, BNP PARIBAS ASSET MANAGEMENT, HONG KONG
“Certainly, the food sector will be the most successful, but also the service and business sector, including human communication and travel, will also benefit greatly.
“With public consumption, the amount of food that can increase the growth of GDP in 2023 is much higher than the current model of 4%.”
REDMOND WONG, GREATER CHINA MARKET STRATEGIST, SAXO MARKETS, HONG KONG
“The 10 new measures are uncertain, because of the high expectations. I argue that the reading from the Politburo meeting is more interesting because it does not mention the “dynamic zero-Covid” policy.
“Instead, it said that China will try to better coordinate disease prevention and control with socioeconomic development and continue to improve the country’s disease control system.”
HYOMI JIE, PORTFOLIO MANAGER, FIDELITY INTERNATIONAL, SINGAPORE
“While the instructions for the reopening are clear, it is important to monitor how things zigzag … when issues arise, the impact must be integrated in a detailed way.”
GARY NG, PRINCIPAL, NATIXIS, HONG KONG
“Recent announcements show China’s willingness to speed up reopening due to economic strength.
“This means that China will see a recovery from 3% in 2022 to 5.5% in 2023 in GDP growth, a rare market that expands in the coming year but it is have a low impact. But it does not mean that everything will be fine again. immediately because zero-COVID has left a scar on consumers and businesses, which will last longer than 2020 to restore this time.
FRANK BENZIMRA, DEPARTMENT OF ASIA EQUITY STATEGY, SOCIETE GENERALE, HONG KONG
“MSCI China has recovered well, the value has increased and it can gradually improve.
“If the re-opening of China will start a new global cycle, we will see a flattening of the US curve, and high US Treasury (rates), that is not happening.
KEN CHEUNG, CHIEF ASIA FX PLANNER, MIZUHO, HONG KONG
“The government’s recent policies are in line with market expectations for accelerating the reopening of China…but I think there are still limits and there are still a lot of limits, so I thought to be a long way from a full reopening.
“The next check is the Chinese New Year, I think the market is looking for another break to make it easier to go back to their hometowns during the Chinese New Year.”
MITUL KOTECHA, PRIVATE INVESTMENT MANAGER, TD SECURITIES, SINGAPORE
“These are important steps, and the reality is that the current policy is very difficult to implement given the extent of COVID in the country.
“But some of these things are already in the air, now we will wait and see (and) how it will be implemented.
ZHIWEI ZHANG, CHIEF MANAGER, PINPOINT ASSET MANAGEMENT, HONG KONG
“This policy change is a big step forward. In particular, the protection of the building will help to redistribute resources to focus on treating patients with severe symptoms and patients who need treatment. apart from COVID.
“The new policy encourages the reopening of China earlier than the market expected. According to the message from the Politburo meeting today: to strengthen market confidence. I China is expected to fully reopen its border no later than mid-2023.
“The requirement of quarantine for international travelers will be shortened immediately. The main issue in the next few months is to keep hospitals open and get vaccinations for the elderly as soon as possible.”
SAKTIANDI SUPAAT, PRINCIPAL OF FX RESEARCH & STRATEGY, MAYBANK, SINGAPORE
“I think the market has, to some extent, priced in that element (of further reduction).
“I think the markets are probably more optimistic about the opening of the economy … and maybe still worried about the possibility of U-turn policies if they don’t … look at the pandemic, and so does management. able to control disease.”
NAKA MATSUZAWA, CHIEF JAPAN MACRO STRATEGIST, NOMURA, TOKYO
“It makes more noise than it changes the game. I mean, it would be better for China to enforce its COVID restrictions but even if China’s economy and commodity prices are strengthened, it will be very beneficial for the Fed to stop because it will strengthen the price level. money. .”
“The most important thing (for investors around the world) is the Fed’s relaxation, and whether the market is starting to see a slowdown in bad news rather than good news, so it will not change by default. that belongs to China.”
Tom Westbrook and Rae Wee report in Singapore, Xie Yu and Selena Li in Hong Kong, Kevin Buckland in Tokyo, Scott Murdoch in Sydney; Compiled and edited by Sumeet Chatterjee & Shri Navaratnam
Our Principles: The Thomson Reuters Trust Principles.