Variant View: China’s Zero-COVID Policy is Dead (Asian Century Stocks Substack)

NOTE: Good objective overview of recent events in China surrounding zero-COVID and associated protests.

• The sectors that have suffered the most from China’s zero-COVID policy are consumer related. Consumer spending has been weak, especially regarding offline retail, restaurants and so on. These businesses are likely to recover at some point.The transportation sector has also been weak. Toll road volumes, airport passenger numbers and railway ridership are still much lower than they were before the pandemic. I expect mean reversion as restrictions lift in the next few months or quarters.I believe that oil demand will also shift upwards as air travel resumes and cars get back on the road. This will have implications for oil & gas producers as well retailers of gasoline. READ MORE

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