Goldman Sachs: "China's Zero-COVID End Possible Only in Q2 Next Year"

Goldman Sachs Expects Chinese Government to Ease COVID-19 Restrictions in Q2 Next Year, According to Report

[Asia Economy Reporter Koo Chae-eun] On the 6th (local time), Goldman Sachs mentioned signs of the Chinese government's easing of the 'Zero COVID' quarantine policy and forecasted that a full reopening (resumption of economic activities) would only be possible between April and June next year.

According to Bloomberg on the 7th, Goldman Sachs predicted in the report that the Chinese government would begin easing COVID-19 restrictions in the second quarter of next year. The report stated, "(China's) lifting of COVID-19 restrictions could be the strongest upward catalyst for the stock market," adding, "The market moves about a month ahead, and that momentum could last for two to three months."

The report particularly noted, "The Chinese government will still maintain the 'Zero COVID' policy until all preparations are complete," and "In our view, ending Zero COVID and restarting the economy will only be possible at the earliest between April and June next year." Goldman Sachs made this statement in response to the Chinese authorities emphasizing on the 5th that there was no change to the Zero COVID policy.

This report came as rumors of easing China's quarantine policies spread through social media comments, leading investors to cheer and the Chinese stock market to show strength last week. However, the Chinese government stated at a press conference on the 5th that it would adhere to the 'Dynamic Zero COVID' approach.

Bloomberg noted that the market paid attention to remarks made at the press conference that excessive measures in some cities should be corrected.