China: China continues to control outbreaks of Covid-19

China: China continues to control outbreaks of Covid-19

China
Corona-virus (05)

Unlike the western world where Covid-19 infection rates remain problematically high, China’s containment strategy continues to be successful. The recent outbreak in China pushed daily cases to their highest since May, yet the swift government response has seen them fall equally sharply.

The repeated success of their strategy has allowed China to reopen its economy in a way that has eluded Europe and the US, delivering a true ‘V-shaped’ recovery as demonstrated by recent GDP data. Given China’s relative economic resilience, monetary policy stimulus has not needed to be as forceful as that seen in many developed markets over the past year. The result for investors is that China’s local currency sovereign debt offers higher yields than many developed markets while also exhibiting a low correlation to equities.

Daily cases

JPMorgan_Insights_Weekly_Brief_EN

Source: Johns Hopkins CSSE, J.P. Morgan Asset Management. Cases include both laboratory confirmed and 'presumptive positive' cases. Data as of 9 February 2021