What China’s Accelerated Reopening Means For The Economy And Markets

Zero Hedge | Dec. 27, 2022

On the evening of 26 December, China released new guidelines to significantly relax its Covid control policy for domestic infections and inbound travelers, effective 8 January 2023. As reported previously, key measures include i) removing quarantine requirements for Covid cases, ii) abandoning the risk district classification system, and iii) shifting to a de facto “0+0” regime for inbound travelers. In a note from Goldman’s China strategy chief, Hui Shan, he writes that while the new guidelines as a major step towards the full reopening, he cautions on the increased challenges to China’s medical system in the near term. He adds that the frontloaded China reopening timetable adds conviction to the bank’s below-consensus forecast for Q4 GDP growth (+1.7% yoy) and above-consensus 2023 GDP forecast (+5.2% yoy)

1. Key takeaways from the new guidelines

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