📝 China to Face Difficult Period If Gives Up Covid Policy: Nomura

If Beijing decides to move slowly toward “living with Covid,” that would prove a significant disappointment, weighing on investment and consumer demand, a difficult period after March 2023 appears unavoidable. But if Beijing takes material steps towards ditching Covid Zero, then the infection rate will very likely surge in a short period of time.

Regarding the recent speculation about relaxing pandemic measures, any positive impact from the specific steps mentioned may be very limited.

On the economic front, China has conducted a few of rounds of easing this year, but the results were not encouraging.

- Nomura