The Beijing Winter Olympics give China’s leadership the opportunity to reflect upon and celebrate considerable achievements in the areas of economic development, technological innovation and international leadership realised since the same city hosted the Summer Olympics in 2008. The event also represents a significant milestone in the final year of President’s Xi’s second term, before he embarks on an unprecedented third term in the post-Mao era. However, the pressures on the Chinese economy facing policymakers in 2022 mean that the Olympic euphoria will be short-lived.
For investors, who have experienced the regulatory headwinds unleashed by ‘common prosperity ’1 in 2021, heightened Covid restrictions and geopolitical tensions, the hope will be that the Winter Olympics mark the peak in macro uncertainty and that policymakers can restore the economy to a more stable growth path for 2022.
Richard Bullock, global strategist, Newton Investment Management.
Doc ID: 858309
1 ‘Common prosperity’ is a Chinese government policy aimed at narrowing the country’s widening wealth gap.