Ripple effect from a slowing China

Due to the economic headwinds faced by China, the market estimates as to where the yuan is headed will have a significant impact on its traditional trade partners, including Malaysia. — Bloomberg

ONE of the greatest investment thesis for this year, well, at least as far as the start of the year was concerned, was the reopening theme of the Chinese economy that was expected to spur the global economy back to its normalised path, post-Covid-19 pandemic.

That economic thesis was backed by the belief that after nearly three years of on-off lockdown measures, Chinese consumers will be in a revenge spending mode while businesses will boom on this heightened demand, especially in the first quarter of 2023 (1Q23) and going into 2Q23.