Is China investible?

Chinese Real Estate Crisis and Extreme Covid lockdowns have hit consumer confidence hard and is yet to recover.

• Shrinking population: China’s population is shrinking for the first time in decades, leading to a smaller workforce and reduced domestic demand. This long-term trend will put pressure on economic growth potential.
• High youth unemployment: With a slowing economy and skill mismatch, youth unemployment is a major concern, reaching over 21% in June 2023 before the data was withdrawn. This raises social and economic risks.
• Geopolitical tensions: Trade disputes with the US and other countries add uncertainty to the economic outlook.
• Policy uncertainty: Government crackdowns on certain sectors and changes in regulations create anxiety for businesses and investors.
• Deflationary risks: Falling prices could lead to a vicious cycle of declining demand and investment, further hindering growth.

Could this be the Japanification moment for China?

Disc: Have a small exposure to China via Axis Greater China FoF