A thawing in China/US tensions could, in our view, help “risky” assets in China for a while by reducing the “China risk premium” that seems to have emerged. But we doubt it would fully reverse the recent underperformance of China’s equity markets relative to those elsewhere, and we suspect that, in the long run, the risk premium is here to stay.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services