Tide may be about to turn: Why the service sector holds the key to China's recovery

This theme is also evidenced by China's notable reversal of fortunes. Since mid-February, the CSI 300 index of Shanghai- and Shenzhen-listed stocks has fallen 12%, three times the MSCI Emerging Market index which has lost 4% over the same period. That is a far cry from the 50% absolute/20% relative return achieved over the prior 12-month rolling period. This pivot can be attributed to several factors. First and foremost China is at a different point of the economic cycle. Having handled the pandemic far better than many of its peers, policymakers are now normalising monetary policy at a ...