Wall Street changes its tune on China as DeepSeek and policy hopes win back investors: ‘Confidence does feel like it’s returned’
What a difference a year makes.
In early 2024, China was struggling through a sluggish post-pandemic recovery, thanks to weak consumption, ongoing worries about property, and a continued hangover from a regulatory crackdown on China’s tech sector.
The pessimism was reflected in equity markets: listings in Hong Kong, the traditional channel for Chinese companies looking for foreign capital, had dried up amid regulatory scrutiny. The Hang Seng Index, the city’s benchmark index, had just notched its fourth straight year of losses.
During Hong Kong’s so-called Mega Event Week—a series of back-to-back conferences capped by the Art Basel fair and the Rugby Sevens tournament—banking and finance executives from Hong Kong, mainland China, Europe, the U.S., and further beyond stressed that they always knew that China and Hong Kong would return.
What a difference a year makes.
In early 2024, China was struggling through a sluggish post-pandemic recovery, thanks to weak consumption, ongoing worries about property, and a continued hangover from a regulatory crackdown on China’s tech sector.
The pessimism was reflected in equity markets: listings in Hong Kong, the traditional channel for Chinese companies looking for foreign capital, had dried up amid regulatory scrutiny. The Hang Seng Index, the city’s benchmark index, had just notched its fourth straight year of losses.
During Hong Kong’s so-called Mega Event Week—a series of back-to-back conferences capped by the Art Basel fair and the Rugby Sevens tournament—banking and finance executives from Hong Kong, mainland China, Europe, the U.S., and further beyond stressed that they always knew that China and Hong Kong would return.
8 months ago
