Much investor attention has turned to China in the past year, with increased foreign capital flowing into Chinese stocks. In our view it is worthwhile looking more closely at this to see what investors are focusing on.
Initially, the emergence of the Omicron variant spooked investors and caused markets to fall.
Central banks are moving increasingly closer to raising interest rates as inflation is beginning to look less and less transitory.
Last month the spread of Covid variants was at the forefront of investors’ minds. This month tighter monetary policy is pushing its way forward.