No one is helping promoting investing in ASEAN than China zero-Covid policy. Everything that is happening right now is a big poster that says, "Hedge your concentration risk because, well, look what is happening???"
Do you think it's a one-off? Of course not.
Do you think it's a one-off? Of course not.
What I mean is this: If China can lockdown its people persistently for years & that means disruption to its demand and supply, then do you think that once it exits zero-Covid that such a risk disappears? The specific risk may be gone but past precedent says u should pay attention
And I am not saying that ASEAN itself doesn't have risks. It does.
But those risks are concentrated in specific countries and there are many countries in ASEAN you can choose from to invest with different comparative advantage.
And it is a hedge from China concentration risks.
But those risks are concentrated in specific countries and there are many countries in ASEAN you can choose from to invest with different comparative advantage.
And it is a hedge from China concentration risks.
Diversification is survival. We know that from Covid. If you have all your eggs in one basket, well, you got concentrated risks no matter how good that basket seems right now. China is telling you to hedge its risks. It tells u that through its persistence of its zero-Covid strat
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