Investor sentiment tends to coincide with government policies. The level of pessimism reached a peak in April, after the Shanghai lockdown. But it should not remain negative and is starting to look up.
One month is one-twelfth of a year. We still have time to recover what has been lost in investment and economic growth.
We have seen stabilization in terms of investor sentiment, and surprisingly, we have seen inflows into Chinese equities year to date.
For investors who are focused on the long term, this might be a good time to start tiptoeing into Chinese equities.