Global Markets Face Possible Reality Check From China Risks

  • Manulife flags challenges from China’s Covid-zero strategy
  • Axa says China’s slowdown is a global economic ‘wild card’

A deserted departure hall at Beijing Capital International Airport during travel and movement restrictions in Beijing, on Aug. 5.

Photographer: Gilles Sabrie/Bloomberg 

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Global markets may be failing to properly grasp the risks stemming from China, evidenced by stocks trading at near-record levels.

A major challenge is China’s Covid-zero strategy, which heralds rolling mobility curbs, supply-chain snarls and trade disruption, according to Frances Donald, global head of macro-strategy at Manulife Asset Management.