JP Morgan AM: China's economy shows signs of strong recovery
China's economy is showing signs of a strong recovery following the abandonment of its zero-Covid policy late last year.
The non-manufacturing business survey jumped to 56.3, in strong positive territory. We think that the recovery in China will persist as record Chinese household savings during the lockdown period leads to a boost in domestic consumption this year.
The manufacturing sector also expanded in February, with the manufacturing business survey reaching 52.6. We think there will be a stronger-than-expected recovery in China and this could drive stronger performance in Chinese equities this year.
