China closer and closer to reopening the country
📌At the beginning of this week, China again gave a new signal that the reopening of the country is getting closer. The Chinese authorities have confirmed the elimination of the quarantine requirement for travelers entering the country and have also opened the sea and land crossings with Hong Kong.
📌International stock markets were quick to react, resulting in a green start to the week. In addition, as China is the world’s main oil importer, Brent and WTI barrels rebounded after the slump experienced in the first week of the year.
📌This reopening of borders (these restrictions had been in place since the beginning of Covid) coincides with the beginning of the Lunar New Year, which, before Covid, was the world’s largest annual migration. This will help the Asian country to progressively reactivate the economy, since all macro indicators indicate that the economy is immersed in a slowdown process.
📌Despite this, many investors are cautious about the news, as China has seen the number of covid cases multiply over the last month since its opening process, which could be a heavy burden on the Asian country’s goal to achieve the complete reopening of the country.
Source: Financial Times