China's Economic Recovery Under Multiple Pressures

China’s economic recovery is not a smooth path as consumption will continue to be under pressure with anti-pandemic measures becoming more stringent, and the real estate sector is still in a negative cycle with record-high developers’ default risks and low appetite for home purchases, wrote Wu Ge, chief economist of Changjiang Securities. Infrastructure investment, seen as the main growth driver this year, may play a weaker role without the help of a robust housing market, as the substantial reduction in land sales revenues has dampened the source of infrastructure funds, said Wu.