China’s pandemic-ravaged economy is starting to see consumers widely opening their wallets, according to Craneshare’s Brendan Ahern.
“We are seeing an incremental rebound from the Chinese consumer,” the firm’s chief investment officer told “ETF Edge” this week. ,[But] It’s not like turning on a light switch.”
China’s National Bureau of Statistics reports that retail sales have been rising since last November.
Ahern, who is involved with the firm’s China-focused ETF, expects quarterly earnings for Chinese companies to improve each quarter in a row — a forecast that may already be manifesting.
tech giants baidu And Tencent Beat revenue expectations for the fiscal first quarter of 2023. alibabaOn the other hand, revenue missed the estimates.
“We’re actually hearing that for a number of companies … in management calls, they’re speaking about how Q2 is already outpacing Q1, outpacing Q4 of last year,” Ahern said. Said.
China’s reopening is also expected to have a positive impact on the airline industry.
singapore aviationof japan all nippon airways And japan airlines All but one factored demand from China into future earnings when it reported net profit earlier this month for the fiscal year ending March 2023.
GraniteShares’ Will Rhind sees a similar growth trajectory.
“travel within the country” [is] “Rebounding … but we have yet to see that from the international arena,” said the ETF provider’s CEO. “It will come, but probably not yet.”
Rhind told CNBC in an exclusive interview later in the week that international travel from China could resume this summer after a sluggish start.
His forecast The government-backed epidemiologist said the country’s new Covid wave could infect 65 million people in a week by the end of next month.
Rhind believes the recent Covid surge will not affect the trajectory of the reopening, adding previous lockdowns seen across China are “very, very unlikely to be repeated.”