Tribeca’s Jun Bei Liu, lead manager of the Tribeca Alpha Plus Fund, writes in The Australian Financial Review about her views on the China reopening theme.

When I presented at the Hearts & Minds investment conference in Hobart in November, China was just waking up from its zero-COVID lockdown.

On the mind of the viewers were the far-reaching implications of the measures announced by the Chinese government to relax COVID controls and support a cratering property sector.

As they say, the rest is history. These initial proposals were followed up by a more forceful set of statements and policy supports after the politburo meeting and Central Economic Work Conference.

The result was that China came out of its zero-COVID state much faster than expected as it pushed for herd immunity rather than flattening the curve, with the obvious impact to boost the economic outlook much faster than expected.

Fast-forward more than four months and we are already hearing the China reopening trade has fatigue. We don’t agree, nor think that many stocks exposed to the reopening theme are not short-term cyclical winners that should be sold and moved on from.

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