Waiting for a Chinese rebound is like waiting for Godot these days. It ain’t coming.
Things are certainly going to improve from today’s deep recession. Morgan Stanley (though be aware that it loves a good China kowtow):
China’s supply chain pressures have peaked: About three weeks have passed since our initial report on the impact to China’s supply chains from its strict covid management approach. Since then, cities have been relaxing restrictions,albeit at a gradual pace and Shanghai looks set to exit lockdowns from early June. Most of the high frequency indicators on traffic congestion, truck freight traffic, waiting times at ports and container volumes have been improving in early May. This suggests that the worst of the supply chain pressures is behind us, though the pace of improvement in the next 2-3 weeks will likely still be relatively gradual.
