Apart from a few isolated infection groups in Beijing and Anxin County, China has left the epidemic cycle early, far leading other countries who are still struggling to kick start their economies. Leading indicators hinted at an improving economy, all PMIs are in the expansion zone for 2 months in a row, with the Caixin services PMI even rising to a 10-year-high.

However, even as various economic indicators like retail sales and export figures indicate visible bottoming out in the overall economy, these figures remained lower than pre-crisis levels. With the politburo stressing the importance of stability and livelihood guarantees, the overall economy is still expected to significantly slow down for the year. Therefore, choosing the right sector is more important, with the Chinese “new economy” sector expected to grow at a higher pace insulated from market conditions, we would hold the sector to higher regards in the mid to long-term.