2023 was unkind to the Chinese market, marred with an ongoing property crisis and a patchy recovery from the nation’s strict three-year COVID-zero policy.
Further compounding these issues, foreign direct investment reached a 23-year low as companies sought to diversify away from China amid heightening tensions and diminished confidence resulting from major tech crackdowns from late 2020 to 2022. Â
While both the Hang Seng Index (HSI) (^HSI) and the Shanghai Stock Exchange Composite Index (SSE) (SSE: 000001) lagged, the global market index, MSCI World Index, has significantly outperformed both within a year.
This disparity was most clearly outlined in early January this year when the Shanghai and Hong Kong markets plunged to their 52-week lows. Â
Source: S&P Global Market Intelligence
However, April marked a turning point for both markets.
China reported a strong first-quarter GDP growth of 5.3%,…
