The global economy remains dynamic thanks to strong figures from the USA and Europe. By contrast, the most recent economic figures from China are disappointing. The Chinese economy has been weakening for some time. The zero-COVID strategy – which is forcing the Chinese government to impose repeated local lockdowns – is proving problematic. Tighter regulatory measures introduced by the Chinese authorities on the real estate market are pouring more oil onto the fire. The real estate market has often driven Chinese growth in the past.
But the current state of the global economy should prove sufficiently robust to overcome weakness in China. There has been little impact on global trade so far. The reaction on the financial markets to the imminent bankruptcy of the real estate developer Evergrande did not last long. This is why we are maintaining our neutral equity market positioning.