China is not immune from global slowdowns caused by high interest rates. But it’s important to point out that Chinese equities did not do well when global growth was robust.
The US slowdown, caused by high rates and inflation, is likely to have an impact on China, particularly on exports.
The export sector has carried the Chinese economy for the past two to three years, and continues to be a strong driver of the Chinese economy.
But at this point, domestic policies are even more important to the GDP growth rate and to the overall market in China. Domestic factors will likely continue to be the dominant drivers of the economy and of the market.
We believe that stronger support policies should be able to offset the weakness caused by external factors.