Pictet Lowers China Growth Forecast Over Next 5 Years

The video discusses the expected annual equity return in China over the next decade, highlighting short-term economic challenges such as the property sector's decline and COVID restrictions. It emphasizes the need for policy adjustments to support the property sector and manage fiscal space. Despite inflation concerns, the current monetary policy is not significantly constrained. The projection of a 7% average annual equity return is based on long-term economic forecasts and the potential opening of Chinese capital markets, though it comes with higher risks.

What factors are contributing to the downward spiral in the property sector?

What is the basis for the projection of a 7% average annual equity return in China?