Morgan Stanley Joins Chorus Expecting China Reopening Next Spring

Morgan Stanley said a spring reopening would be likely to strengthen economic growth to about 5.5% by the second half of next year

(Bloomberg) — Morgan Stanley joined other major investment banks in predicting China is likely to ease Covid restrictions and reopen the country by next spring, providing a possible boost to the economy’s recovery.

Pressure to reopen will build because the “zero-Covid” strategy has led to significantly weaker income growth and a sharp rise in youth unemployment — outcomes that are at odds with President Xi Jinping’s policy goal of “common prosperity,” according to Morgan Stanley.