How Is China’s Reopening
Affecting Markets?

1. Increased domestic demand
Retail Sales YoY is the main indicator of consumer spending. This indicator rose to 3.5% in February. So, China's trading partners' exports of basic goods could be expected to increase.

2. Tourism reactivation
China’s reopening could boost tourism, especially in the Asia-Pacific region. The Pacific Asia Travel Association forecasts Chinese outbound travel to Asia-Pacific will reach 2019 levels by the end of the year, benefiting countries in this region.

3. Commodities
China is a significant consumer and importer of raw materials and commodities, so its reopening is likely to increase demand and prices.However, there's still uncertainty regarding raw materials. In January, prices increased, reflecting investors expectations of improved global activity. A month later, China sets it’s economic growth target at 5%, less than expected. Therefore prices slightly decreased, reflecting investor concerns and fear of an uneven China's recovery.