MANY investors are beginning to ponder how much of China’s reopening growth is already priced into the market, following the spectacular rise of the MSCI China index by more than 50 per cent since its October 2022 trough. 

The Hang Seng Index (HSI) and the Nasdaq Golden Dragon China index – a tracker of US-listed Chinese companies – both took a breather from recent rallies after the Chinese New Year (CNY) break, ahead of the US Federal Reserve’s policy meeting this week.

The US central bank had raised rates to over 4.25 per cent from near-zero levels in 2022 in its fight against inflation. This week, it is expected to raise rates further, but by only 25 basis points.