China's Covid policy will hinder property recovery: Goldman Sachs

On the Covid policy, Goldman expects China to reopen the country -- which it defines as a period when authorities no longer lock down cities when cases surge -- in the first half of 2023

China’s zero tolerance approach to combating Covid infections will curb the benefits expected from recent measures to support a struggling property market, according to Goldman Sachs Group Inc. 
 

“Because of the Zero Covid policy, all the ongoing property easing might not be transmitted into the property sector recovery,” Hui Shan, chief China economist at Goldman Sachs, said in an interview Wednesday with Bloomberg TV’s Haidi Stroud-Watts and Vonnie Quinn. 

The Covid strategy “is a big roadblock for the property sector, for the labor market and a number of aspects of the economy,” she said.

China introduced a series of