Invesco Expects Strong, Cyclical-Led Recovery in China

The video discusses the economic rebound in China, driven by household consumption, and its positive impact on APAC economies, particularly through tourism and exports. It examines the influence of the US dollar and Fed policy on emerging Asia, predicting a conducive environment for market assets. The recovery of Chinese consumer spending is expected to be gradual, with significant savings accumulated during the pandemic. The reopening of China is anticipated to benefit dependent economies, though global growth remains a concern. Earnings are projected to be weak initially but may improve in the latter half of the year as China's reopening gains momentum.

What is expected to drive the cyclical recovery in China?

• Manufacturing sector

• Foreign investments

• Chinese household consumption

• Government spending

How might the US dollar's performance affect emerging Asian markets?

• A stronger dollar will boost exports

• A weaker dollar will benefit emerging markets

• The dollar's performance has no impact

• A stronger dollar will lead to higher interest rates

What is the expected shape of the recovery for Chinese household consumption?

• V-shaped

• W-shaped

• U-shaped

• L-shaped

Which economies are likely to benefit from China's reopening?

• Middle Eastern economies

• Commodity exporters like Australia

• European economies

• South American economies

When are earnings in China expected to improve following the COVID reopening?

• First quarter

• Not expected to improve

• Second or third quarter

• Fourth quarter